Stock Market Technical Analysis
Click on above images to enlarge
Even though the SPY did a double retest bounce up from its Day 10 ema yesterday and continued to rally through this morning, at midday it got up to its 50 ema & was slapped back down in the afternoon as happened yesterday morning from the late Friday test of that line making a two day double top at the Day 50 ema. In reality, today is the fourth time the SPY has been knocked down by the Day 50 ema, it also reversed at it the morning of 8/31 and also morning of 9/1. That's four failures at that line in three weeks and as ugly as it sounds and is, I wouldn't write the market off just yet. The SPY could easily reverse tomorrow with a Day 5 ema / 20 ema bounce to make a fifth try at breaking through that Day 50 ema.
Granted the way the Advance/Decline was nosediving the last two hours into the bell makes it likely that we will have a gap down at least in at the premarket session open if not at the regular session open. What happens from there will be totally dynamic as we are still having a fierce bull/bear fight here at the NASDAQ /VIX threshold I have mentioned in the past week.
Alan
Please see risk disclaimer below
