Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Monday, September 29, 2014

It's Going To Be A Close One

Stock Market Technical Analysis

click on images to enlarge

With this morning's open, the market was slammed with a purge of selling for a big gap down.  Since the open the Indexes have climbed steadily.  In the top chart above, the EMAs that are currently in play are compressed as tight as they can be which means they could easily go either way now. 

Looking at the midterm channels on the indexes on the lower cluster, we see that at the gap down we lost the channels but have recovered them in the first hour.  Technically, this counts as a successful "hard" test of the lower line.  Nonetheless, they are trying to turn the Titanic here and if they do it could take a couple of days of sideways action to provide sufficient base on these lower lines to get the shorts to start covering. If the S&P suffers a down-cross in the the top chart EMA pair it could trigger a new wave of selling but the action so far this morning is demonstrating strength after a gap down opening.

Trade well my friends


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