Critical Level for stocks?
DrBubb, on 13 Oct 2014 – 5:51 PM, said:The drop in stocks…… the SPY (etf for SPX) stopped on the 52wk-MA … update
Various people, myself included, think that Stocks are now at/near a critical support level.
(Here’s another) : David Skarica / AddictedToProfits.Net
As you know I have been warning about a big stock market meltdown for a while. The markets are right on the cusp of support at the 150-200 day moving average.
In this issue I show you what happens to markets that go straight up for 2-3 years then break the 200 day moving average . As a warning it is the financial version of a R rated movie.
(And Another) : Tony Caldaro
The market opened lower today, finished a small a-b-c down to SPX 1891, then rallied to 1912. While this was unfolding the trading day started to look like Friday. Check out the one minute chart. We counted the a-b-c decline as three waves of another seven wave Minute C. The rally to SPX 1912 is the fourth wave, and the afternoon drop is the fifth wave. Should a seven wave decline be enough to end Minute C, the downtrend may end as soon as tomorrow. The SPX has already hit our initial downtrend target of the 1869 pivot. If the current decline is only another part of the larger Minor C decline, it could extend further. Either way, we expect a low soon, a rally, then another low. Then we shall see where the technical are at. Short term support is at the 1869 and 1841 pivots, with resistance at the 1901 and 1929 pivots. Short term momentum is trying to display a positive divergence. Best to your trading on potentially turnaround Tuesday!
MEDIUM TERM: downtrend
LONG TERM: bull market