Vediamo cosa succede oggi.... io penso che lo storno della scorsa settimana potrebbe ulteriormente riveberare i suoi effetti ma bisogna essere più prudenti della scorsa settimana...
All kidding aside, last week the volume surged to 147% above the average weekly volume and was the second largest weekly distribution on record giving way only to the week the markets reopened after 9-11. That is unprecedented particularly because it would appear to have occurred at what now looks like the beginning of a long-awaited correction.
The concerns my firm has at this point are multifaceted and include fundamental as well as technicals. We also continue to watch a continuation of utter complacency by many market participants. Whether it is an end to a correction or a bear market, predominately they end with just the opposite – fear. Hence the adage, buy fear and sell greed. At this point there is still no real broad-based fear. This is the main reason, along with many technical indicators, why my firm believes this is just the beginning, not the end. It is only when you start to hear the words uttered, “Is this the beginning of a new Bear market?” when the fear might be enough to stem the tide.
The last Cup O' Jo's Eye on the Ball section outlined what my firm believed to be ST support levels on the DJIA, SPX, NDX and RTY (12,100 - 1,375 - 1740 – 770 respectively) that if broke could lead to (11,700 - 1,320 - 1,700 - 745). Monday’s continued downward action left the sisters finding support at their respective 150-DMAs (12,040 - 1,374 - 1,710 – 760).
SPX
Went right to the next support at 1375 – 1374
Largest weekly distribution volume week since 9-11 and it’s at the beginning
Largest test of upward channel bust