Seeing some bearish patterns here that signal some downside action ahead:
* Markets were jacked up end of month/quarter with commodities, tech and others marked up. However, the heavy volume occurred earlier in the day when the selling was heaviest.
* The monthly close under 1060 was bearish as the candle that was created for the month was not able to exceed the critical 20 month moving average.
* Five distribution days (higher volume) in the last six is a sign that downside momentum is building.
* The VIX has formed a higher low on the daily chart and threatens to break higher and reach the 30 level once again.
* New highs have broken down and are not being exceeded.
* A plethora of secondaries were issued in September, bringing on more supply to a market not buying (price pressure).
* The anti-market trade, otherwise known as the US Dollar, seems to have put in a bottom.
* The reaction to bad news on the economic front is not shrugged off by traders.
These are just a few of the signs that I'm seeing here, there may be more. Of course, any/all of these could just be fakeouts. We'll have to watch the price/volume action to determine where the next path is.
Tag >> bearish signs
