S&P 500 closed below 1220 support level yesterday and if we have a follow through down day today with a close lower than yesterday we are most likely headed to 1100 on the S&P. Everything else is breaking down as well. Silver was the most hard hit yesterday. Yesterday's decline occurred despite an up day for the Euro.
On the ADX monthly chart we see a bearish inverted hammer beginning to print. Remember I wrote last week that we were right up against resistance and if we don't break out to the upside we wouldn't be going sideways. There is just too much bullishness given the fundamentals. All the charts below show the trend or range breakdowns in some cases, this is the usual occurrence when what ever the equity you are trading is below the 150dma, just timing it is difficult.
Headed to 51.5
Barely hangin on, watch for the 132 break before short.
Having said all this we have to remember this is not a free market and the central banks in US and abroad can intervene (change the rules of the game so to speak) and we would have to adjust our line of thinking.
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