Tuesday, 8 October 2013

1pm update - ignore the bounces

US equities are showing another day of moderate declines, with the sp' having now broken the 100 day MA of 1662. Despite any intra-day bounces, momentum is clearly with the bears, and even the weekly index/VIX charts are flashing major warning signals.


sp'60min



Dow, monthly


Summary

*Dow is especially weak as many realise, but on the monthly chart, you can see the importance of the Aug' low.

A Dow break <14500..opens up another 2000pts lower, which is certainly a target bears currently have in mind.

Dow MACD histogram set to go negative - assuming current declines hold, next month. something we've not seen since last December.
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MOMO stocks continue to get hit hard today...

FB, daily


along with NFLX, TSLA...the usual suspects.