Current Position of the Market
SPX: Long-term trend – Bullish, but correcting within the long-term bull market trend.
Intermediate trend– bearish correction which could retrace as low as 2200 before it is complete
Analysis of the short-term trend is done on a daily basis with the help of hourly charts. It is an important adjunct to the analysis of daily and weekly charts which discusses the course of longer market trends.
Last week, SPX declined over 100 points to a new closing low andis ready to challenge its intra-day low of 2604. DJIA matched it with a loss of 1127 points for the week. But NDX was the worst performer, dropping 340 points for a new correction low. SPX is approaching a support level just above the former low of 2604. Perhaps for this reason, or because of the Thanksgiving holiday, breadth was relatively bullish in the last couple of days. Does that mean that it will hold in this area before staging a good rally?