Wednesday, February 12, 2014

The Bears Last Stand...

I don't have much to add from the post earlier.  The SPX closed down .49 pts and remains underneath the ST resistance levels between 1820-23.  The /ES close was a little trickier and it still remains a couple pts higher than I would like. I think tonight we will know our answer if a pullback or continued move higher is next. Meanwhile I wanted to post 2 final charts of the Dow. These charts are the most meaningful thing the bears still have in their favor.

Dow Jones Monthly

This chart clearly displays the Jan close and break of the uptrend that had been in place since the 2009 lows.  The chart below is a weekly closeup of the same broken trend line. As you can see, the Dow was pushed back by this new monthly resistance. If bears can get the SPX back under 1800 this week that should mean that the correction will continue shortly.

Dow Jones Weekly Closeup

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