S&P 500 futures (and broader indexes) are showing first signs of weakening down to new 4-5 day closing lows as of today, while the NASDAQ 100 (NASDAQ:QQQ) has been down every day except Tuesday. This may catch up to the S&P 500 (INDEXSP:.INX) near-term.
So while we’ve had 9 consecutive UP days for the Dow Industrials, the broader market has been quite a bit weaker, particularly in Technology, and that’s necessary to mention and be aware of.
At today’s closing levels, this would be the first sign of CONFIRMING counter-trend Demark related sell signals for the S&P and DJIA since late August, and as mentioned in yesterday’s call, both TNX and USDJPY also up against good resistance and showing some evidence of stalling out in the last couple days. Technically, I expect selloffs in all three in the next 3-5 weeks, with Yields, stocks and USDJPY moving lower- KEY for today’s close on S&P will be 2494, and then under 2487 can allow for a bit more downside.
Here are 3 Charts I’m Watching:
S&P 500 Futures
S&P will confirm its first counter-trend sell TODAY, Friday 9/22 with a close under 2502.75. UNDER 2494 an initial concern and then under 2487, but August lows stand out as the larger line in the sand- 2414-7 in Futures/SPX cash.
Nasdaq 100 ETF – PowerShares (QQQ)
Momentum making consecutively lower peaks.. while NASDAQ 100 has been down every day this week outside of Tuesday
10-Year US Treasury Note Yield (TNX)
There are signs of 10 Year yields (INDEXCBOE:TNX) hitting resistance and set to potentially rollover in the next few days. UNDER 2.21 should lead back down under 2.10
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Author has positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
