S&P loses accelerate as Dow Industrials confirms 'bull trap'.
We are starting to see a pick up in Large Caps loses as the bearish wedge in the S&P continues its move towards its ultimate resolution. The index now finds itself at its 20-day MA with 'sell' triggers in the MACD and On-Balance-Volume. Expectation is an undercut down to wedge support
The Nasdaq lost a little ground on the day, but remains well ahead of its breakout. Technicals are net positive and the index is outperforming Small Caps. It also above all lead moving averages.One index which may be showing its hand is the Dow Industrials. The breakout from early August has morphed into a 'bull trap' as the index also sees a trendline loss to go with the undercut of the 50-day MA. A new 'sell' trigger also exists for On-Balance-Volume. It's starting to look ugly for this index.
As we head into the end of the week we have weakness in Large Caps which may soon expand into the Nasdaq and the stalled Russell 2000. It's not looking great for the Dow Jones Industrial average, with the 200-day MA a downward target to consider.
You've now read my opinion, next read Douglas' blog.
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