Last week the market fell out of bed. Prices dropped below the lower trend line of a consolidation pattern that has been forming for about two months. Once prices fell below this line they went for broke with downside momentum. Assuming the chart is in the middle of a "measured move" -- meaning the distance it traveled before the consolidation pattern will equal the distance it will travel after the consolidation pattern -- we've got more downside running to do. Also note the price/SMA relationship is now extremely bearish: prices are below all the SMAs. all the SMAs are moving lower, and the shorter SMAs are below the longer SMAs.
On the EMA chart, notice the EMA picture has been extremely bearish for some time.
Notice that on the MACD may indicate the market has a lot further to drop.
Bottom line: this is a bearish chart that does not bode well for the future.
