Here's the current futures as of 8:30 am ET. Yesterday, the bears pulled the S&P back below 900, closing at 883.92 - and as you can see, the bulls have not come charging in on a white horse in the middle of the night to save the day - things are still in the mid-880s. I think that the bulls are pretty exhausted from trying to maintain the late gains in the last uptrend and that any slowdown in the price falling will be more due to the bears taking a break rather than any strength on the part of the bulls.
The change in trend is now starting to show in the indicators on the daily chart:
S&P 500 - Daily Chart - 2 Months
We've now had 3 straight down days for the first time in ages - as least since before the uptrend started in the beginning of March. And, ominously (cue spooky organ music), volume has increased all three days. Traders are taking notice and getting out. The MACD-H has now dipped back below 0 - the last little MACD-H upcycle ended after just a few days and the MACD-H max in the cycle came in a lot lower (albeit at a higher price) than the MACD-H max from the last up-cycle. That's bearish. The MACD itself (something I rarely follow, but that a lot of people do - the red and pink lines above the MACD-H) is turning over with the faster MACD now dipping below the slower MACD - which is usually a sell signal. And, looking at the actual price chart, the fastest MA on my chart - the 13 day MA - has now turned south. If prices continue to decline the 26- and the 50-MA will eventually turn down also, and. as the faster MAs cross and drop below the slower MAs, that will also constitute a sell signal to those who use MAs as their buy/sell signals.
A couple of weeks ago I showed how the MAs were all signalling a price rise while the MACD-H was signalling a price decline. It looks like the MAs won in the short term, but the MACD-H won out in the end. So much for those "green shoots" that everyone's been so excited about.
They had "green shoots" back in the spring of 1930 too....
At this point no one should be on the long side - we have clearly topped out on this last 2 month run and the rollar coaster has reached the top and is heading down.
Probable support areas to be wary of on the way down - the big area around 875 that gave us a lot of trouble on the way up - and then around 860 and then 830. How the market does when it hits these areas will give us a clue of the strength of the downturn.
Good luck