Market Mondays

Last week was a terrible week for the markets. The short version is we got a ton of news from the financial sector none of which was good. Citigroup announced there would be more writedowns, regional banks announced they were cutting dividends, and Goldman Sachs said regional banks would have to raise an addition $65 billion in capital to stay afloat. I wrote about it in more detail here.

For now, let's take a look at the SPYs. I'll touch on the QQQQs and IWMs throughout the day along with hitting some other news and events.



Notice the clear downward move in the markets on the SPYs chart. On Monday and Tuesday the markets formed an arc. The markets opened lower on Wednesday and continued to move sideways into Thursday. The market dropped hard on the open on Friday and then dropped again about halfway through the trading day.

Bottom line -- this chart looks terrible.



On the daily chart, notice the following:

-- Prices are below the 200 day SMA

-- Prices are below all the SMAs

-- The 10 and 20 day SMAs have moved through the 50 day SMA

-- The 10, 20 and 200 day SMA are heading lower

-- The 50 day SMA is just heading south

This is a bearish chart.