Bears Are In Play Again?

After experiencing a double bottom (in Jan and Mar 08), the major indices reversed its downtrend and broke its respective neckline to confirm an uptrend is established. Indeed, since mid-March, the major indices moved within an uptrend channel.

However, since the last 3 weeks, an interesting formation appeared in the charts. The Dow, S&P500 and the Nasdaq Composite Indices experienced resistance at the SMA200. Furthermore, the markets closed negative in huge numbers over the last 2 days.

• The Dow30 index broke below its uptrend channel and is resting at the SMA50.
• The S&P500 index broke below its uptrend channel and is resting at the SMA30.
• The Nasdaq Composite index is resting at the low end of the uptrend channel.

Would the market continues its downtrend? It seems so.

PersianCat (Millionaire-in-progress)