The index retreats for 2 consecutive days in a big way. If the chart was a control panel, lights will be blinking and horns blaring. The following technical signals were simultaneously issued today: (a) a break of the short term up trendline, (b) a break of the prior support of the minor trend, (c) a relapse of the index below the previously broken intermediate down trendline, and (d) a break of previously significant support and resistance levels in the intermediate trend. The following potential future scenarios are implied by today's price action: (1) a short term consolidation or non-directional movement, or (2) a short term reversal into a new downtrend (2.a.) that goes beyond 11731 and leads to a re assertion of the previously interrupted intermediate downtrend, or (2.b.) that ends somewhere near 12,270 (Fibo retracement) and subsequently reverses upward to establish a higher high and a provisional uptrend for the intermediate time frame. In any case, today is a clear sell signal for those who align their trades with the short term trend.
TRENDS
* PRIMARY UPTREND | Corrective wave | Prior support 11634 | Prior resistance 14030 |
* INTERMEDIATE DOWNTREND | Directional wave | Prior support 11634 | Prior resistance 13780 | Relapse below the previously broken down trendline | Break of important support level | Price objective 11634 |
* UNDEFINED MINOR TREND | Downswing | Prior support 12269 | Prior resistance 13136 | Break of the up trendline | Break of prior support | Price objective 12269 |
PRICE AND TURNOVER
Close: 12,601.19 * Change: -227.49 (1.77%) * Volume: 860.5M
MARKET BREADTH
Net Advancing Issues: -1282 * Net New Highs: +49 * Net Up Volume: -2,920,346,147
STOCK MARKET, ECONOMY & OTHER HEADLINES
AP|Stocks tumble on $134 oil, Fed meeting minutes|Wed May 21, 7:46 pm ET
AP|Fed sees slower growth, higher unemployment in `08|Wed May 21, 5:20 pm ET
AP|Oil prices pass $134 after report of supply drop|Wed May 21, 6:33 pm ET
TRENDS
* PRIMARY UPTREND | Corrective wave | Prior support 11634 | Prior resistance 14030 |
* INTERMEDIATE DOWNTREND | Directional wave | Prior support 11634 | Prior resistance 13780 | Relapse below the previously broken down trendline | Break of important support level | Price objective 11634 |
* UNDEFINED MINOR TREND | Downswing | Prior support 12269 | Prior resistance 13136 | Break of the up trendline | Break of prior support | Price objective 12269 |
PRICE AND TURNOVER
Close: 12,601.19 * Change: -227.49 (1.77%) * Volume: 860.5M
MARKET BREADTH
Net Advancing Issues: -1282 * Net New Highs: +49 * Net Up Volume: -2,920,346,147
STOCK MARKET, ECONOMY & OTHER HEADLINES
AP|Stocks tumble on $134 oil, Fed meeting minutes|Wed May 21, 7:46 pm ET
AP|Fed sees slower growth, higher unemployment in `08|Wed May 21, 5:20 pm ET
AP|Oil prices pass $134 after report of supply drop|Wed May 21, 6:33 pm ET
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