Feb 8th, 2010: Continued Weakness – Red Monday
Posted by pugsma on February 8, 2010
5:30 pm EST: A very weak Monday with no follow-through to the upside to confirm Friday’s late day buying. Today ws the first red Monday I can remember in a while. It’s possible the SP-500 is tracing out a very weak B-leg corrective with a-B and b-B completed. The maximum now for c of B looks like about 1085. But I’m not so sure of that count at this point. I think wave 4 of (5) of A may have completed today at 1071 and wave 5 of (5) of A is now getting underway that will reach levels below 1045. The 1030 area is still a solid target for the completion of this wave, whether it be just A or all of A-B-C of the corrective off 1150. The 200-day SMA has now climbed up to 1020 and still rising, so as shown in my daily chart. The 1030 area will be point of confluence for the 200-day SMA and horizontal support by the end of this week. Also notice how the 13-day EMA that crossed over the 34-day is now acting as a cap on upward price movement. The 13-day EMA sits at 1087 today and rapidly falling. Any pop up towards the 13-day should be sold. And until the upper pink down channel is breached to the upside, there pops should continue to be sold. The trend is still down and I believe it likely to continue through most of this week.
15-min (EOD):
Daily 13 vs 34-day EMA (EOD):
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