That was quite a strong rally off a significant support zone but there remains much unfinished work before bulls can
regain the momentum to take SPX above the 20ma, above 2650, and turn this market bullish.
Resistance at 2650 and the 50ma lie ahead on the path to 2680 and beyond. Maybe the Jobs Report (NFP) tomorrow
will provide fuel for the bulls but this market has a long & uphill task to instill confidence in the buy-the-dippers who are
meeting extremely motivated sellers at lower and lower tops.
DECISION POINT has a new ST PMO SELL for the SOX:
DP Bulletin: SPX Joins Dow with a New ST PMO SELL Signal
Today the SPX joined the Dow with a new PMO SELL signal. If the correction continues much longer, the OEX and NDX will follow suit. Today's action left the SPX with a long tail that tested the purple rising bottoms trendline. This test was successful, but the breakdown and trading below the blue ST rising bottoms trendline is concerning. We're seeing the 200-EMA penetrated yet again. If the SPX is to avoid a bear market, it needs to rebound here or at the very least at the February low. It avoided a break below support at the February low back at the end of March. It's time for the market to rally but this new PMO SELL signal suggests it isn't ready just yet. Again, support at Feb low is critical.
See here for charts and graphics:
http://stockcharts.c...ell-signal.html