Charting Stocks

Technical indicators are beginning to turn negative for the first time since the beginning of the March rally. The S&P 500 index  violated its 3-month uptrend while the Dow Jones Industrial Average closed below its 200-day-moving-average. Momentum indicators have turned bearish.

The Dow Jones (Chart below) is still holding on to its uptrend line though RSI and MACD suggest further weakness.

The S&P 500 (Below) has violated its uptrend line which began in March and is testing its 200-day-moving-average.

The VIX is a fear indicator. A declining VIX is good for stocks while a rising VIX coincides with a selloff in equities. The VIX has been on a steady decline since February and may be close to breaking out (bad for stocks). A move above 34 would confirm it.

Short funds appear to be bottoming and may be in the early stages of an important advancement. DOG, which moves in the opposite direction of the Dow Jones, cleared the important $66 price level.

SH, moves in the opposite direction of the S&P 500 index broke above the important $65.67 price level.

Related posts:

1. Dow Industrials, Transports, S&P Close Below Key Moving Averages
2. Dow Jones: Rally Losing Steam
3. Charles Dow Rolls in His Grave: The Distortion of the Average He Made Famous
4. Dow Breaks Below 7,000 as Future Drop
5. Dow Breaks November Lows; Triggers Fresh Dow Theory Sell Signal