Market DiariesData
On Monday we saw a Hindenburg Omen in quite a while. I must apologize if this has been going on last week, since I missed it. The significance is that when more than one Omen occurs within a limited period, the probability of a crash increases significantly. Regardless of the status of the Hindenburg Omens,we should be on full alert for a crash.
SPX
The SPX declined below intermediate-term trend support at 1238.15t, but did not break through the hourly mid-cycle support at 1224.54 or the 50-day moving average at 1220.88. Thus, we may need another down day just to break through all of the supports. In addition, we should not be seeing retracements above 50%. In fact, today’s 32.4% retracement may be all we see in this decline.
In summary, SPX is breaking through its “congestion zone” and may soon be in free-fall below 1220.88. If SPX declines below 1158.67 in the next day or two, there will be no options expiration bounce.
NDX is now below all supports except the weakest, its hourly mid-cycle support at 2270.58. Its retracement may also be complete. A gap down below 2270 may be all the NDX needs toaccelerate down into the end of the year. A back-test of the 50-day moving average at 2296.11 (and failure) is also known as the “kiss of death” by traders.
NDX
Today’s failure at the massive Head & Shoulders neckline in the Euro should indicate that all equities are at risk.
XEU
