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| Today's Comments (Short Term Outlook) |
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Looking toppy Another rough day for stocks yesterday as the major indices lost about 2% each. Things were worse earlier in the day but technically, the picture is looking toppy. The S&P 500 closed below the 20-day moving average, the PMO indicator has clearly crossed below the 10-day moving average pushing that indicator into sell mode, and of course the MACD has been smelling trouble for some time.  Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk Despite the recent selling, the S&P is actually still up about 0.75% for the week because of Monday's huge rally. The selling also only brought the overbought/oversold indicator into neutral territory.  Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk Although the current outlook is looking a bit shaky, it is not always easy to interpret the pre-holiday trading. It could all change if we see things turn back up after the holiday, but it sure appears that we may have a lower high forming. Combine that with some of the negative readings in some of the indicators that we watch such as the put / call ratios, the PMO, and the MACD, to name a few, and I am very happy playing defense. That's all for today. Thanks for reading! Enjoy your long weekend, and we'll see you back here on Tuesday morning. |