After an unconvincing, low volume, 2-week rally in US Equities, the intermediate term TREND remains bearish.
The intermediate term TREND line of resistance was not tested to the upside and now we are seeing short term (immediate term) TRADE lines of resistance develop inside of 1144. In the chart below we outline an important updated line of resistance at 1130. The one-factor 200-day moving monkeys are obviously grappling with a breakdown through that line today as well.
There is an important immediate term TRADE line of support at 1093 that needs to hold. Our go forward outlook on a double dip in both US growth and US Housing remains.
Keith R. McCullough
Chief Executive Officer