Friday, 21 August 2015

S&P 500 breaks lower through multiple supports, favour further downside

Daily chart shows the S&P 500 cash market breaking lower. Could be labelled as a big Head and Shoulders top with an initial target some 100 points lower than current levels.



Daily chart for the futures shows a break lower through the lines I have been posting for many months.



Weekly chart shows that in a bigger picture view the market has possibly completed a bearish false break higher from the trend channel formed from the 2009 low. I say possibly coz you can see from the chart it's been possible a few times before...



Another view of the weekly chart shows that the market is now testing the trend line drawn from the 2011 low. If today's break lower is to prove false, the market has gotta rally now. I favour further downside (understatement!) and will manage my risk based on that view.