Thursday, July 12, 2012

Bearish short term trend change confirmation

The market managed to put in its 6th consecutive down day and it left one ugly wave to count. I'd have to get very creative to put labels on it and I rather not so I'll just leave it as it and see how the bouncing wave evolves. The close under the Trend Average and the 50 day MA leaves the potential rally under pressure as the short term trend now is confirmed to the downside. Also, the daily MACD is rolling over so there might be more downside ahead. However, the larger trends are still going up and unless the bears can truly make advances to the downside, specifically closing under the 200 day MA, the last 3.5 months has been a correction and not the start of a bear market.

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