Down day in all stock indexes, gold flat

indu0814.gifThe stock indexes resumed the downtrend today. After the narrow range day yesterday, the market was set up to make a directional move today. It did so, but one could not really call this a trend day down, as there was much rotation, or up and down movement, throughout the day, with the bias clearly to the downside in almost every market. Credit worries were the reported cause. The technical indicators started pointing down prior to the headlines being saturated with credit worry stories. The only chart I’m posting today is the Dow Industrial cash. It shows a clear break of the uptrending channel a couple weeks ago, then a snap back rally to near the center line, which is a linear regression curve, and the regression curve is now losing upward slope and rounding over the prices. It has been clear for some time in all the indexes, with the exception of the QQQQ, that rallies should be sold. This was a bit of a tough hold on the short side, as the day following the big down day last Thursday, the market rejected prices at the previous lows and closed near the highs. And the following day was a small range indecision day. But momentum did stay down, and prices stayed below the three day pivot (yellow dots). Possible divergences could set up, and sentiment seems to be getting negative enough for a counter-trend rally. But for the moment all trends in stock indexes are pointing down. Gold is flat, with all my indicator stuck in the middle.
Thanks to the people who started posting comments here. I’ve been experimenting with different spam filters, so if a post doesn’t appear shortly, let me know. I have it set to require moderator approval for the first comment from an email address, and after the first approval the comments can be posted right away. The email address only identifies the person so the comment doesn’t need moderation after the first post. The email address will not show on the blog.

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