Technical’s Do Not Look Good For US Market Indexes
$DIA, $SPY, $QQQ, $VXX, $CS
Technical analysis is not looking so good for US stocks in here.
In a note from Credit Suisse’s (NYSE:CS) Ric Deverell and his team point to some technical marks worth watching, 1 of which could be a big signal that the top is in for the S&P 500 benchmark stock index.
The index finished at 1,884.09 in New York Tuesday.
The research note: We have been looking for the market to retest the spike low from August at 1,867, and then medium-term support at 1,820, the October 2014 low. With several Key sectors now also falling to major support levels – notably industrials ‒ and looking vulnerable, we think the risk a major top may be established has risen sharply. Below 1,867 should keep the risk lower for price and “neckline” support at 1,832/20. Below here would mark the completion of an important top, turning the core trend Bearish. If achieved, we would target 1,738/30 initially – the low for 2014 itself, and the 38.2% retracement of the 2011/2015 uptrend. Although we would expect this to hold at first, a break would be favored in due course for 1,575/74 – the 38.2% retracement of the entire 2009/2015 Bull market.
While we have been in a sideways market for a while, a major top would mean breaking below support marks such as the October 2014 low of 1,820 in the S&P 500.
On the Northside, a move above 1,953 could help ease selling pressure.
Credit Suisse is not the 1st market participant to highlight troubling technical analysis patterns recently. A earlier this month HeffX-LTN pointed to a downward sloping “Head and Shoulders” pattern in the DJIA, suggesting further selling pressure ahead, as we have seen
I noted that Dow Theory sell signal, 1 of the oldest technical indicators around, was also triggered in August when the DJIA and Dow Jones Transportation Average fell below the low of a previous selloff, set in October 2014.
DJIA +47.24 at 16049.13, NAS 100 -26.65 at 4517.32, S&P 500 +2.32 at 1884.09
Volume: Trade was ahead of average with more than 980-M/shares changing hands on the NYSE.
- NAS 100 -4.6% YTD
- S&P 500 -8.5% YTD
- DJIA -10.0% YTD
- Russell 2000 -10.1% YTD
The CBOE Volatility Index (VIX) 26.54, -1.09 back into the middle of Tuesday’s range.
| HeffX-LTN Analysis for DIA: | Overall | Short | Intermediate | Long |
| Bearish (-0.42) | Very Bearish (-0.60) | Bearish (-0.44) | Neutral (-0.22) |
| HeffX-LTN Analysis for SPY: | Overall | Short | Intermediate | Long |
| Very Bearish (-0.53) | Bearish (-0.48) | Very Bearish (-0.56) | Very Bearish (-0.53) |
| HeffX-LTN Analysis for QQQ: | Overall | Short | Intermediate | Long |
| Bearish (-0.32) | Bearish (-0.35) | Bearish (-0.35) | Bearish (-0.25) |
| HeffX-LTN Analysis for VXX: | Overall | Short | Intermediate | Long |
| Bullish (0.35) | Bullish (0.25) | Bullish (0.35) | Bullish (0.43) |
The post Technical’s Do Not Look Good For US Market Indexes appeared first on Live Trading News.