This is the big news today -- a possible break of the upward trend. The market started to rally on July 15 and has been in a clear uptrend since then. As prices rose they pulled the SMAs higher. However, today prices moved below the trend line established at the beginning of the latest rally. Prices are also below the SMAs.
This is an initial move -- and could turn into nothing more than a simple correction as the market rallied higher. However, the news this week has not been good. It started with Fannie and Freddie concerns (which are very well founded) and today we learned the housing market is nowhere near bottom.
Simply put, the bad news is really starting to weigh on the market.
