The Stock Market Is Not Nearly Broken

Much like with the gold stock sector, there was support and then there was best support.  SPX failed support today in grand fashion as it lost the 50-day moving averages.  Best support is lower, however, at 2100 (+/-) as we have been noting for some time now in.

This is an intact stock market, period.  Woo-Hoo, the bears got some fun last Friday.  But SPX was probably always going to test the 2100 area when da boyz came back from da Hamptins.

NFTRH 411…

“The daily chart of SPX shows a touch of the 50 day moving averages, which can also act as support. Major support however, continues to be around 2100 and the weekly EMA 50 on the chart above (currently 2076 and rising).”

You know me.  You know I spent a lot of 2015 and early 2016 bearish.  I have not changed.  The market is what changed.  It changed to bullish when it crossed the weekly moving averages upward and created the noted support zone.  When it fails that zone, I’ll be more than happy to be a bear again.  But this test – and that is all it is – was always going to happen; especially given the overly bullish sentiment we’ve been tracking each week.  Just like in the gold sector, the stock market was due for a sentiment clean out (correction).

********

Subscribe to NFTRH Premium for your 30-45 page weekly report, interim updates and NFTRH+ chart and trade ideas or the free eLetter for an introduction to our work. Or simply keep up to date with plenty of public content at NFTRH.com and Biiwii.com. Also, you can follow via Twitter @BiiwiiNFTRH, StockTwits or RSS.