SPX, INDU, WLSH, NYSE, COMPQ, NDX update: something is rotten in the state of Denmark

Here’s a myriad of the most important market indices that I.I. follows. These are all busy charts, but the main thing is to -once again- focus on the trendlines. Besides the INDU and COMPQ, all other indices (SPX, WLSH, NYSE, NDX) have again broken below their long term trendlines that have held any downside in check since almost 2 years. So the mere fact that these trendlines can’t hold support anymore, failed once, and now twice (!!), should be a warning sign for bulls. Especially the break down of the much broader indices (WLSH and NYSE) should be an even bigger warning sign. In an healthy uptrend price can break temporarily down the lower trend line, just to run a lot of long-stops and get all bears on board, before whipsawing right back in -causing a short cover- and continuing the upward trend. This happened late last week (Thursday & Friday), but now price is once again falling down; this is not healthy. Instead the market has sucked in the last bulls hoping for a continuation of the uptrend and they are now stuck. I said in my Friday update “Within less than 2 days sentiment has already changed from bearish to bullish. Wow, is all I can say.” The b-wave had done its work. Or as Elliot said “They are sucker plays, bull traps, speculators’ paradise, orgies of odd-lotter mentality, or expression of dumb institutional mentality”. Seems like that just all happened in 2 days only 😉  (click each picture to enlarge)

WLSH5 10072014nyse 10072014

INDU update 1007204SPX update 10072014-andx update 10072014COMPQ update 10072014

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