Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
It’s quite ugly out there and especially sinister considering yesterday’s bounce. Some serious headfakes the past two weeks shaking out bears and bulls, before this move. The S&P 500 had a 2.4% loss back on June 1st, so it’s been the worst day in over 5 months thus far. The RSI for a stock like Apple is now in the upper 28s which is a rare thing indeed.
The index bounced briefly at 1395 (a few points) but came back to crash back through it. Now it is hovering right below it in the 1393s. The 200 day is around 1380. There are still some gaps in the mid 1300s from all the QE talk and Europe rescue talk in the summer. Usually they fill much sooner than this (2-3 months), but we have had a very abnormal market tricked up on liquidity and the market’s belief in the Wizard of Oz (otherwise known as central bankers).
The NASDAQ has broken its 200 day moving average (2982) by a mile; it currently trades around 2940.
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