Today the 5EMA crossed down slightly through the 10EMA as the $SPX lost 10pts on fairly heavy volume. We are now looking at a situation where the $SPX does not appear capable of going higher. Of course, this is so obvious that it is perhaps obviously wrong.
With the $SPX now just 25pts above the very important psycho voodoo round # at 1200, we have to wonder if that is where it’s headed. Should it fail to hold at that level, then we will all wonder if 1158 is in the gun sights.
While $SPX was down 0.87% today, the important Transportation Index was down 1.62%, and that is never a good thing.