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Stocks Open At Resistance, Long-Term Sell Signal Pending

The SPY gapped up to the 199-200 resistance area which was mentioned yesterday as a likely stopping point for the recent short-term rally. Should the 200 level clearly get taken out, the SPY still has major resistance to contend with around the 203-204 area. $NDX also gapped up to the 4340 resistance level mentioned yesterday where a reversal is likely as well.

 

The next few days could determine the next major direction in the U.S. equity markets. Should stocks close on Friday above current levels, the long-term trend as defined by the 43/17 ema pair will remain bullish while any close this week below current levels will give us the first sell signal on that moving average pair since the 2011 correction/bear market (when all U.S. stock indices fell over 10% with some exceeding the 20% bear market threshold).

$SPX 20 yr 43-17 trend Sept 9th

$SPX 20 yr 43-17 trend Sept 9th

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Sep 9, 2015 10:00am|Categories: Equity Market Analysis|Tags: , , , |Comments Off on Stocks Open At Resistance, Long-Term Sell Signal Pending