The 10-Year Daily chartgrid below shows only the 50, 100, and 200 smas of the
Dow 30, S&P 500, Nasdaq 100, and Russell 2000 Indices, without the candles.
All three moving averages are still in an uptrend on the daily
timeframe; however, the 100 and 200 smas are beginning to flatten, the 50 sma
has hooked down, and they are merging…a possible sign of a
reversal-in-the-making. In fact, the 50 sma has crossed below the 100 sma on the
Nasdaq 100 Index, and is getting close on the other three Indices…reflective
of recent weakness and profit-taking, particularly in the Technology
index.
A 20 sma has been
added on the next close-up shot of the chartgrid. This moving average has
crossed below the other three smas on the Dow, Nasdaq, and Russell, but not on
the S&P, yet. Looking at these four moving averages, they are all still in
uptrend (higher highs and lows). However, I'll be keeping a close eye on the 20
sma on the SPX, in particular, to see whether it crosses below the 200 sma, and
I'll be watching to see whether price on the SPX breaks and holds below the
important 1400 level mentioned in my post of November 30th. A failure of the 20 sma to cross
back up above the 50, 100 and 200 smas would likely signal that further weakness
has entered the markets, with the potential to see it make a lower low.
