S&P 500: The Trend is DOWN

FN: The S&P 500 (SPX) failed to close that gap yesterday and was violently rejected into the close. Resistance around 810 held and the probable bankruptcy of GM and Chrysler brought out the sellers. Prices are now below the rising 200 period (15 minute chart) EMA (green line) and the slope hast flattened. Prices are also below the 50 period (red line) and 20 period EMA (blue line). It will be difficult to overcome the 742 000 ADP job losses reported today and create some upward momentum… especially with Non-Farm Payrolls now looming ominously on Friday.

We are at the top of the range and overbought on the daily chart. There is nothing but air all the way back down to 666. All support on the way is pretty weak…

The trend is your friend… and it is still down.