Stocks lower, gold higher

spy1114.pngJust about everything that was up yesterday was down today, and what was down yesterday was up today. Whatever happened to the Tuesday Turnaround? Now it is the Wednesday Whipsaws. Today was very choppy in the stock indexes. They were higher for most of the session, but gave up in the final half hour to close lower. Gold was up sharply, and crude oil regained almost all of what it lost yesterday.
On the chart to the left of the S&P etf I drew the same red horizontal line on that swing point low near the middle of the chart. I suggested yesterday that prices could test that level, or go through it somewhat. The opening of the day session saw prices gapping through that resistance line, but the was near the high of the day. Then prices bounced around that line for most of the session, to finally turn lower at the end of the session to close well under the line. The trend is still clearly down and momentum is still somewhat oversold and heading up based on the big bar from yesterday. The may be some choppy action around this level before momentum turns back down. At least that would be preferable as it would relieve the oversold situation, rather than have a resumption of the downtrend in an oversold condition. But I’m prepared either way. And of course there is always the possibility of a resumption of the uptrend, as unlikely as that seems at the moment. However, as long as the cyan line stays under the darker blue line, and that pivot of a couple weeks ago isn’t taken out, I’m only looking at the short side. The regression curve and error bands that I usually show have been somewhat flat, so this indicator is giving a better indication of trend at this point.