You can see on the chart below that, with the exception of the 50MA, the other MA’s are rolling over. Also a couple of the MA’s are getting ready to cross down through one another and that is never a good thing.
Wilder’s ADX is now on the verge of a bearish X while only a few days ago the ADX looked to be getting ready to cross up through the -DI line. The 20/20 sto, which moves a lot slower than the 5,3,3, has just lost 80 and while it could easily reverse with so many of the MA’s falling this doesn’t seem likely.
The down trending line continues to exert authority, which surprises me.
This chart is about to go into ‘sell’ mode. One might say that it already is in sell mode because of the drop in the 20/20 Sto and the break down of Wilder’s. If you could go with this chart and not be concerned about a news event before the bell tomorrow, then you certainly wouldn’t be adding to any existing long position or initiating any new long positions. But then they’ll probably be a news release early tomorrow and Europe will MOOON.
In the meantime, until $SPX can break above the falling trend line and then clear 1277, caution is the word of the day.