SP500 Index Trading Update

Ok here is a brief update on what happened as of close of market today in the SP500.  Today we closed under the June 11th low on the SP500 and volume came in about 11.5% less than on the 6/11 price swing high.  So it looks like we have a short term sell signal now.

Yesterday we did test the June 11th swing high on adequate volume, it was within 1%, BUT we did not close above the 6/11th high.  So the market at least as represented by the SP500 could not get the job done.  And now today we find ourselves with 11.5% lighter volume and a close under the 6/11th price swing high.

So this is saying to me right now that we will swing back to the other side and head for the price gap on the SP500 of 910.15.  That gap was on 1.374 billion shares and so could serve as significant price support assuming we get the decline that I am anticipating.

The conflicting signal is the Nasdaq Composite Index which closed at a new high today but the volume dropped off quite a bit as well.

The Dow Diamonds symbol DIA also issued a sell signal based on volumes and similar price swings to the SP500.  The SPY ETF did the same.  So a sell signal on the SP500 and NYSE volume, a sell signal on the DIA ETF, a sell signal on the SPY ETF, and a low volume new high on the Nasdaq.   The sum of these says to me that we go down short term.

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Posted in Index Trading, Online Trading, Technical Analysis

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