Market news, views and information from a Wall Street veteran
Tuesday, October 17, 2006
S&P500 Daily Analysis for Oct 17th
New 1st time frame DOWNtrend.
Bears were keener on the day but, importantly, lost control of the market and lacked the commitment to close down near the lows for the day, as evidenced by the long tail on the candle.
Triple MAs remain BULLISH.
MACD histogram has turned down giving a ST bearish signal - tighten stops.
ST volatility coming off after it tested a previous minor resistance level - expect ST consolidation or a pullback.
Volume increased as the market sold off - ST slightly bearish.
There was SIGNIFICANT upside price rejection from the previous resistance area (marked in yellow on the chart). Watch this area to continue to act as support over the next few days if the market maintains a bearish tone. It will be quite significant if this area is broken to the downside.
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