Daily Uptrends Broken

The uptrend has been broken. You can see that the uptrend failed when the support levels around 1,200 were broken on the S&P 500 (ES Z0-D). The 34-day moving average held price today, but below that, meaningful support does not show up until 1,150 and 1,134. 1,134 would be similar to the August selloff.

None of these areas have to hold and price can reverse back up from anywhere, but this market has been very technical in how it has traded, so I will be watching for reversals from anticipated levels.

Here is the hourly S&P 500 (ES Z0-60 min) chart. On it, you can see that there is a ton of resistance above the current price. There was timing on the hourly chart for a reversal up yesterday, but the bounce has been very weak. Weak bounces into resistance, in a downtrend are normally not a bullish setup…



The Dow (YM Z0-D) has broken its uptrend and I have listed potential support levels.



The NASDAQ 100 (NQ Z0-D) has broken its uptrend and has already fallen to support.



I hope you were patient if you wanted to buy Gold (GC Z0-D). You can see that its uptrend is also broken and meaningful support comes in around 1,313 – 1,305.



The 120 minute chart on Gold (GC Z0-120min) is the same story as the S&P 500. There is substantial resistance above price here, and the trend is down for now.



The Euro (6E Z0-D) looks similar to Gold. The Euro has pretty meaningful support in here and had better hold, or it is going to make a serious retracement of the recent rally.



The 30-year US Treasury (ZB Z0-D0) has been massacred over the past couple weeks. It finally found support at the 168% extension zone and bounced hard up into resistance. The Treasury normally benefits as a safe haven trade during times of fear, so there may be money flowing out of Municipals and into Treasuries. Or it may simply be bouncing during a downtrend. We’ll see how it reacts at resistance.



All in all, risky markets broke their uptrends and are now correcting. Some are at or near daily support, and most are at hourly resistance. There is a lot of concern about Municipal Bonds being allowed to default be a Republican Congress (California, Harrisburg, Hamtramck) and the potential defaults by Ireland, Greece and Portugal. All the while, the Commodities exchanges are increasing margin requirements on risky assets. This should continue to be an interesting week. Watch the hourly charts for turns in the daily patterns.