Major Stock Indices at Inflection Points

By | September 23, 2014

23. Major Indice Support daily 22 chart

The major stock indices are looking vulnerable from a technical perspective. Eveningstar patterns have formed on the daily charts of the DJIA and the S&P 500 indices – these three-day bearish reversal patterns reflect a positive-to neutral-to negative transition, and they are forming right above important trend line support. The NASDAQ and the Russell 2000 index, hit hardest over the last several sessions, are testing support of their own, with the 50 day moving average crossing under the 200 day average on the small cap chart.
The integrity of these support levels will be key the to the intermediate term direction of the broader market.

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