Friday, July 24, 2015
SPX, RUT, NYA: Bears Take the Wheel
The market took a bit of a beating since last update, and we now have what appear to be impulsive declines across several markets. This suggests that the downward trend will continue for at least one more wave -- and possibly a lot more.
Let's start with RUT, which may be the most damaging chart to the various bull cases:
NYA also continues to look near-term bearish -- and perhaps intermediate bearish as well:
Finally, just to play devil's advocate, SPX presents one way to view things bullishly:
In conclusion, the charts are suggesting that the bears aren't done yet, and RUT in particular looks like it wants new lows. While a bounce wouldn't be unreasonable, I would expect the next bounce to be sold. The bear case will remain preferred unless the recent highs are reclaimed, or until such time as the downward wave structure appears complete. Trade safe.
Posted by PretzelLogic at 3:25 AM