Trend Watch: Long Term Bearishness abound $spy $qqqq Skip to Content

Trend Watch: Long Term Bearishness abound $spy $qqqq

We had a rather bearish drop of 3% yesterday. Since im on a half day leave today I decide to take a look at the long term charts.

What I don’t like about it is that on the MACD it shows a clear sign that it is Failing the zero line and it went from cutting up to springing down.

MACD does give a very delayed signal and what I feel is that from past movements like this, when the indicators have reached such an extend, the selling is almost over. Still we have one instance in 2008 where a test of the zero line and a failure brings about a drastic downward move.

The area of 1046 on the S&p 500 is important since we have 2 major change in directions there. That couple with that it is near the 50% retracements from the 2007 bull market highs indicate that this is an area that we need to watch for support and resistance.

Next support I will watch for is around the 970 region.

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For my dividend stocks, this long term indication seems to suggest more downsides. But for all you know the movement these days might very well be noise.

I will be watching the market movements these days. If need be I will pare down the holdings in these stocks.

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