There are only 2 key levels of support left at the 100dma (1203) and the bottom of a large wedge we are tracking. (1184) Underneath that is air til 1121 and then air again until 1098.
The Stochs are still in the middle on a sell and the MACD just turned negative. There is still plenty of room for selling if the market so chooses.
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Key Levels
Upside -- 1213, 1229, 1251, 1260-1265, 1310
Downside -- 1203, 1184, 1121, 1098
(running out of downside support, may get lopsided soon)
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SPX Daily;
This chart shows both the large wedge and the channel. We are below the channel, so support on that is lost at the moment. What we have left is the 100dma and the bottom of the wedge.
If those 2 areas of support were to get taken out on a close, things could turn ugly in a hurry. In particular breaking that big wedge south would really send the market into a hissy fit.
The Stochs are at 49 on a sell and the MACD just turned negative, so there's still plenty of room for selling.
We MAY get a couple days of bounce off of the 100dma that we pinged today. Hard to say if we do or not because the bounce intra-day was so weak, but it's possible, however I think would be something short term to try to close out this week with on some kind of positive note.
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The financials took the big hit today. The Russel 2000 was trying to hold ground and then gave up late in the day. Some of the momo stocks were holding their own.
Leaders are disappearing though. Stocks like AMZN and LULU that were strong leaders have had a really brutal couple of months.
Right now we are left with IBM, GOOG, AAPL, CMG, HANS and a hand full of other stocks that are holding up and near highs attempting to lead.
The chart patterns for these stocks do not look good though. HANS and CMG for example both are building what looks to be a large bearish rising wedge.
Commercial real estate is also holding up relatively well still. The desperate search for dividends is still strongly in play.
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How this week ends could be pivotal to what happens very short term. A poor ending to this week heading into Christmas that takes out support could be potentially devistating. We'd only need about 20 more points south to do so.
GL
CJ
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