3pm update - closing hour weakness

Well, the markets are showing some afternoon weakness. The FOMC has FAILED to inspire the bulls to keep buying. Neither do the words of the Bernanke seem to be helping.


sp'60min

sp, daily 4mth

Summary

I would be very surprised if we see any kind of late day ramp. It looks like sp'1363 was the top of sub'wave C of wave'2.

Bears first target on the daily chart will be a close under the 50day MA at 1346. That seems a little unlikely today, much more within range tomorrow. A close in the low 1340s tomorrow, opens up 1330/25 by the Friday close.

From a MACD (blue bar histogram) perspective, we are actually just starting to tick lower..the first initial sign that the top is in. A close in the 1340s would be a bonus for the bears. A green VIX would be stronger sign I believe.

So..wave'3...begins (probably ;:) )

More after the close, where I will especially focus on the bigger picture targets.