The SPY put in another decent volume selling day. In these past two weeks the SPY has had 3-days of 300-million+ volume. Only two other days going back to May of '08 have had volume over this mark.
Also, our momentum indicator has gone negative (the slow line, a.k.a. the "Stability of Trend" -line crossing below zero). This has happened on three other occasions since March. When this happens we would look for the fast line to correct back into this slow line, where we would look to enter short once a lower high has been established ("First Cross" sell signal). On the chart below we have only really had one official First Cross sell signal, that one being back in June/July (first ellipse). The second and third time the slow line went negative, price quickly recovered with strong momentum to the upside.
The S&P closed right above support (1084).
Perhaps we'll get a Dow 10k test tomorrow?
The Russell2000 could have some support underneath it:
The Nasdaq had a bad day today
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