Technical Focus: Stocks Dump; What to Watch in SPX and Dow
- Watch the SPX 2017 trendline
- Momentum considerations on the daily aren't terrible yet
- NEW Real Time Sentiment page!
Stock markets tanked on Tuesday. The SPX registered its first 20 day closing low since before the US election in November. The Dow registered its first 20 day closing low since January. A few things to remember; the indexes were at all-time highs on the first day of March and the daily momentum profile has been overwhelmingly positive. When I refer to momentum profile, I'm referring to RSI. Extreme readings (such as above 80) often mark short term peaks but more important tops often display divergence with the indicator. This isn't always the case of course but it is a good guideline. If the market environment is still bullish, then the next price low probably occurs with RSI bottoming near 40 (above 30 at least).
Price wise, there is a short term trendline to be aware of in SPX near 2320. A related parallel is probably near term resistance at 2365.
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