Notice the large number of failed rally attempts over the last 10 days; prices have just had a hard time getting beyond the 10 and 20 minute EMA.
Yesterday we have another gap lower, making five in the past week and a half.
The EMAs are now turning bearish (a), with the shorter crossing below the longer (especially the 200 day EMA). The A/D line hasn't seen a big exodus of money yet (b), but the CMF is starting to show people leaving (c). In addition, momentum is clearly waning (d).
\Prices are at clear support levels (a).
Notice that prices yesterday hit upside resistance at the 200 minute EMA three times.
Simply put, the market has a clear bearish tilt right now. Don't expect to see rallies maintain momentum beyond the 200 day EMAs.
Further confirming the bearish tone of the stock market is the bond market's rally, which is still in full force. The long-term uptrend is still in place (e) and the EMAs are still very bullish (a). Money is flowing into the market (b and c) and there is clear momentum (d).
After peaking at the end of April (a), lumber prices tumbled (b) and are currently consolidating losses (c).
Copper prices are correcting. They have either formed a flag pattern (b) or a downward sloping pennant pattern (c). Momentum is moving lower (d).
Copper could still be in a simple correction from their recent rally as prices have yet to break below major support. However, with the weakness in the housing market, I have to wonder how strong copper can be going forward.
I'm on Linked In and Twitter (@captivelawyer). Silver Oz's Linked In name is @silver_oz. NDD is a fossil and may be reached by etching a picture in stone on the wall of a cave.
The Bonddad Economic History Project
At the beginning of 2012, I decided to start looking at the actual, statistical history of the US economy starting in 1950. The reason is simple: to find out what really happened. So, when you see title of a post that begins with a year such as 1957, followed by "employment" or "Fed policy: you know what it's for. You can also access the information by typing in BE for Bonddad econ and a year to find information on a particular year.
Here is a link to pages that contain links to all the posts on the years listed.