Market sell-off resumes shortly after trader's rally peters out…
Friday, June 04, 2010 With the SPY at 106.82, the downtrend is clearly in full force, down 3.51% today on heavy but not spectacular volume:
The two most recent up days were low volume affairs that sputtered out almost exactly at the middle of the 20-day range, a sign of a very weak market. The only encouraging sign here is that there seems to be significant support in the 104 and change area, a level at which the market was turned back 3 times since February. If you draw a line connecting the highs of the market since the relative peak in late April, you get a trendline that is now slightly above the 110 level, which would have to be decisively broken for the downtrend to be presumed over. The 20-day-low would have had you short the market since 117 at the end of April.
The Euro continues to get crushed; notice how it violated the 20-day-low where it had found support for the past 2 weeks, gapping below it:
The Swiss Franc has been badly mauled but is holding up much better than the Euro recently and notice it has not violated long-term key support as the Euro has - is it trying to form a bottom?
The Swiss stock market is selling off though:
