SPX Recap

The SPX lost 10 points on Friday, and the futures are down 11 this morning on European debt concerns mostly and the Euro is taking a beating, USD index is above critical resistance level of 76.2 this morning and everything commodity related is down as well, but surprisingly gold is down just a fraction after being up 18 dollars on Friday.

Taking a look at Friday's option expiration session began with a gap lower and followed through by shedding thirteen points and putting the low of the day on the chart just before 11:00 am. The SPX then bounced to test the highs of the day eleven points off the lows before 2:00 pm. But the last two hours of the session saw the index give back most of that bounce to close just a few points off the lows.

Market breadth Friday was extremely negative, especially with the declining volume ratio exceeding the declining issues ratio. However; the ten day average of Net Advancing remains positive so I am seeing conflicting information.

Checking the Breadth Indicators we have indicators pointing both directions. The McClellan Oscillator is on the brink of oversold and the Summation Index has reached a point where we've seen bounces in the recent past.

In the SPX Index there were 151 components advancing and 321 components declining. There were 100 new highs and 22 new lows. The five day moving average of New Highs is 119 while the five day moving average of New Lows is 29 and the ten day moving average of Net Advancing is 102.

Declining volume was higher at a ratio of 2.7 to one. 51.8% of the SPX are above their five day moving average, 39.2% are above their 10 day average, 35.6% are above their 20 day moving average, 51.2% are above their 50 day moving average, and 79.2% are above their 200 day moving average.

We are going to break below major support in the SPX at the open lets see where we close on the day. Sell in may and go away?