Wednesday, May 13, 2009

05.13.09 - Very Negative Cumulative Tick

Today's weak retail sales numbers pushed the markets down very quickly, and we have seen a mild negative price bias ever since. However, internals paint a worse picture still, with Cumulative Tick and Down Volume highly negative. Nevertheless, while we have broken our parabolic rise, we remain within the multi-week trend channel, which lies within the SPY $88 handle. Also, while volume has risen the last two days, there has certainly been nothing record breaking about it.

As long as the VIX remains capped below 33.50, I won't get too concerned. By the same token, if we do see a recovery, I expect traders will initially respect the down-trending five-day moving averages now running across all indices.

SPY Entering First Target Zone:

No comments: