I started writing a macro note on what this morning's negative GDP revision means for stocks. But I stopped, as I had to examine my head more than once while typing it. So I said, screw this nonsense and stick with charts.
S&P 500 is nearing an important pivotal moment. If 20 dsma crosses below 50 dsma, there is a very strong possibility of price heading down to 200 dsma.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimmHgDCNVOq4AcHMJ-5xidHZr2ciPCL957uEhWKMlKfR0D4zmoSKYM9FVZ6USujoFFVLlAJOJ8ixzSe9-0Imkv1zd755uGjJqk_0w31hoTESmqiC0n3WZoCIvsHLfiSw97_jPh17xaOh30/s640/SPX_20_50_200.png) |
click on chart to enlarge |
Unquestionably, the 20 day MA WILL cross below the 50 day MA Thur/Friday.
ReplyDeleteMomentum from last week is carrying this lower, and this recent bounce is surely indeed...just a bounce.
Should be a very valid short from sp'1600 down to the low 1500s.