S&P500 : The short term uptrend in this index seems to be over. Momentum oscillators are almost into the negative territory that no fresh short-term long positions would be advised in such a scenario. However, it would be too early for Medium to Long term investors to throw in the towel.
Immediate strong support for this index is around 888 area. Even a close below here would not threaten its medium term uptrend as long as 845 is holding. The decline is also happening on an insignificant volume. Moving averages are also not diverging very negatively so far. Medium to long term investors might cherry pick at thier well researched counters during this decline.
The market players are not confident about the economic conditions, fundamentally -and very rightly so. Therefore, it is more likely that it is until the forthcoming earnings season which could give some opportunity to find some green shoots because most of the economists do not consider the employment rate as the lead indicator. Manufacturing and consumer demand are the lead indicators for some of them. Watch out!
