Since the S&P 500 Index reached 1,200 on an intraday basis on July 15th, the index pretty much ran unimpeded to 1,291 on July 24th. This 7.6% advance in a little over a week certainly warranted some consolidation. A large part of the market's advance had been due to a strong rebound in financials.
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As the below index chart notes, maybe this is simply a little profit taking or lightening up of positions in financials due to their recent strong performance. The shorter term index chart below seems to indicate the market is still in a small upward trend channel.
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On a longer term basis, the index remains in a downtrend; however the index could be moving to the upper resistance around 1,320.
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Lastly, the market decline over the past four trading days has occurred on lower volume as evidenced by the second chart. Maybe this bear market is losing its legs.
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