Three Failed Attempts to Regain 200 Day Moving Average, Buyers Beware!

In baseball if you swing and miss three times then you are out.  On a chart if you see three failed attempts to break resistance...get out or short.

Each time the SP5oo tries to regain the 200 day moving average it fails and it is immediately hit with selling.  Sellers are in control and the market is still in correction mode.

Today Moody's downgraded Greece's debt which caused the market to give back early leads.  The chart shows a picture of a move up to the 200 day on low volume.  This means there is very little buying going on.  In order for me to gain confidence in the markets I need to see a break through major resistance levels with conviction and that moment is not apparent yet.

Quite contrary three failed attempts to regain major support has failed.  This causes me great concern because in a bull market the 200 day acts as support.  In this case it is acting as resistance, which is typical of bear markets..buyers beware!

9 Responses

  1. doctor ED
    Beware?all stocks Are golds included?
  2. Anticipate Opportunities
    No...not our gold stocks...
  3. Richard
    The Nasdaq is back above the 200 DMA and the Dow Jones Transportation Average is back above the 200 DMA. What are your thoughts on these positive signs?
  4. Anticipate Opportunities
    I will monitor closely...too early to tell.
  5. Clint
    Can you please give us your thoughts on GMO? :)
  6. cecil
    how bout ung ?
  7. how about csco. it's seem consolidated,volume is huge? buy time?
  8. willi
    csco under 50 and 200 day moving average wouldnt touch it yet personally gold /silver way to be looks like
  9. willi
    gold and silver place to be in

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