S&P 500: More To Go On The Downside?

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Well, we opened higher, with the S&P 500 recouping its end of day losses from Wednesday. The problem, we failed at 3,425, the same spot we fell on Wednesday, and also the top of the gap fill. It led to a sharp decline in the markets through days end, finishing back at the bottom of the other gap around 3,330.

It leaves us an important point. If we manage to gap lower today, I think that things get ugly, moving to the downside, with the next stop around 3,260. It probably doesn’t end there, either.

I tend to think there is still more to go on the downside here. The breaking of the uptrend is a major problem, and we haven’t even come close to retaking it. There is a clear trend lower in this market, and the buyers are being completely overwhelmed by the sellers at this point.

Meanwhile, the Q’s (NASDAQ:QQQ) to retake the uptrend and failed as well. The uptrends breaking in both indexes is not a good sign and suggests a longer-term break in trend and shift in direction. I think the next level on the Qs is somewhere around $265.

The dollar fell hard initially following the ECB announcement, but recovered dramatically, rising back to 93.50. The dollar is getting ready to rip higher, you can see it in the chart. Once it breaks 93.50, it is off the races, I think, and that couldn’t be more bearish for gold.

This trader standing there buying gold around $1925 is going get run over very soon. Gold is heading lower, I think. I wouldn’t be surprised to see back at $1790.

Netflix (NASDAQ:NFLX) is starting to break down, with the RSI now trending lower, and the stock sitting just over support at $475. Probably heading to $450, and lower. A break of $475 probably confirms a double top.

Amazon (NASDAQ:AMZN) is in trouble too, breaking its uptrend the other day, and failing at the trend line again today. Momentum is leaving this stock in a hurry with a drop back to $2800 coming.

AT&T (NYSE:T) is very close to a breakdown and drop to $27.35.

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