Santa Is A No Show: $SPY Chart 12/23/18

Santa Is A No Show: $SPY Chart 12/23/18

Chart Courtesy of StockCharts.com

  1. All my moving average signals are bearish and currently telling me to stay in cash until we have a confirmed reversal.
  2. The RSI at 22.67 is very historically oversold from a historic standpoint rarely does the S&P 500 go down and stay down so far and so fast with no bounce. 
  3. The recent support low at $257.12 on December 10th was broken and the downtrend continued. 
  4. The trading range is the widest it has been all year measured by the ATR at 5.95. The best day traders have more room to work intra-day if they can get on the right side of the move. 
  5. The MACD continues to be in a bearish cross under since December 7th.
  6. Huge volume to the downside last week as $SPY was trading over 250 million shares a day on Thursday and Friday. 
  7. There is nowhere to hide in the S&P 500 sector in December 2018 as Utilities $XLU is the last sector trading over the 100 day SMA. In bear hurricanes all sectors eventually sink as money managers have to raise money for redemptions. 
  8. $VIX remains in an uptrend saying the market is currently in an expanding volatility environment.
  9. The stock market is a confirmed downtrend. 
  10. Stocks as an asset class are currently under distribution.