Yesterday I wrote an article about positive divergences on New Lows for the Nasdaq and NYSE. The Nasdaq is still sporting its positive divergence with New Lows, but the SPX, NYSE, OEX (not shown), S&P400 (not shown) and NDX (not shown) have lost the positive divergences they had yesterday. The SPX wasn't showing the positive divergence yesterday except in the very short term, but that has disintegrated as well.
Conclusion: Sorry for the bad news, but a bear market rally isn't likely in the cards yet. It's certainly possible we will rally as we do have oversold indicators out there, but given the high volume selling and crash today, we doubt any rally will be sustainable.
Good Luck & Good Trading,
Erin Swenlin
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Erin Swenlin is a co-founder of the DecisionPoint.com website along with her father, Carl Swenlin. She launched the DecisionPoint daily blog in 2009 alongside Carl and now serves as a consulting technical analyst and blog contributor at StockCharts.com. Erin is an active Member of the CMT Association. She holds a Master's degree in Information Resource Management from the Air Force Institute of Technology as well as a Bachelor's degree in Mathematics from the University of Southern California.
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