Negatives I see with the Nasdaq
- The 60 minute chart shows a RSI that is stalling near the 60 area (just as it should).
- Bearish wedge
- Volume has been declining each day after that first strong day of volume
I expected the bounce on the daily chart at the 50 day ma and now we’re in a wait and see mode to see if this bounce is the real thing. Just to be clear I am still short.
The percentage of stocks on the S&P that are above their 50 day ma has been in a steady decline for nearly 9 months. For that reason this is not a stand alone indicator as the timing is horrific, but it is worth nothing as the markets start to weaken technically.
The chart on copper is quite bearish and can be viewed as a microcosm for the economy in generals. The recent breakdown from a channel and subsequent rebound has this chart in a very precarious position. One caveat is this looks to easy of a trade.
Some of the best charts showing up on my scans tonight:
