The stock market lost upside momentum this week. It is overbought short-term. S&P 500 Composite rose 1.34 points or 0.10% on Wednesday 7/6/11. SPX shows substantial chart Resistance in a 3% band from 1331 to 1371. Support 1249 to 1279. Trading volume on the NYSE fell 2% below the previous day’s pace and still was [...]

S&P 500 Composite rose 17.16 points or 1.34% on Tuesday 6/21/11. SPX closed above the highs of the previous 9 trading days, suggesting a minor bounce. SPX fell below 3-month lows last Thursday, however, confirming a more significant downtrend. Relatively small counter trend bounces are normal but do not change the clear intermediate-term downtrend. Volume [...]

S&P 500 Composite rose 6.86 points or 0.54% on Monday 6/20/11. All of the gain occurred in the morning, and stocks stalled out after noon. Small counter trend fluctuations do not change the clear intermediate-term downtrend. SPX fell below 3-month lows last Thursday, confirming a significant downtrend. Volume on the NYSE fell 29% below Friday’s [...]

S&P 500 Composite fell 12.22 or 0.91% on Thursday. Trading volume rose to confirm the downtrend. SPX closed below the closing prices of the previous 9 trading days. Momentum indicators based on SPX fell further following their bearish divergences, that is, they never made it back to their February peaks. I previously pointed out that [...]

S&P 500 Composite fell 4.60 points or 0.34% on Tuesday. SPX broke below a steep 8-day uptrend line. Momentum indicators based on SPX have turned down. The major stock price indexes show signs of exhaustion of the short-term uptrend. Sentiment indicators have been suggesting that the stock market may be over loved and overbought. And [...]