What About the Market?

Hello my Investors, Traders and Reader Friends. On Tuesday the market registered a relatively large fall. The DJ-30 declined 0.52%, the SP-500 had retreated 0.30% and the Nasdaq Comp. fell 0.14%. On this occasion I would stress that the Russell-2000 lost 0.9%, which means that a large number of stocks of medium and small were the most affected.

The volume continued to be very low and volatility increased slightly but steadily inextremely depressed levels.

At this point, we could be talking about a day of pause for the market. However, there aresome indicators that show some deterioration in the market. Still not to speak of a correction. But it is a first red light.

On the one hand, there is a decrease in the RSI. Also note a fall in the MACD. The combination of these two indicators (and any others), show a certain pressure on the market. Chances are that the DJ-30, challenge the next support level located at SMA 18 days. The value of this level is 13.052 points, ie 120 points below the current value of this index.If it succeeds in keeping as support, this index would continue its way up. otherwise it would face the following support (50 days SMA) located today in the 12, 835 points. That is 217 points below yesterday's close.