Wednesday, the SP lost 21 on the day, settling just above a very key area. The 2010 close and also the 4/8 Gann level is right in the 1250 area. Other features from Wednesday’s price action is the penetration of the zero line in MACD and a near climatic reading in the CCI of -240(nearly short term oversold). The bias is negative and picking up momentum.

The Naz lost 36 settling below the 2010 close and below the 4/8 Gann level. Note that like the SP, the MACD has broken the zero line. Note that if the trend continues lower, the December breakaway gap will be a key target, supported by the 0/8 Gann level.

Multi sector daily chart:

The contra indicating put/call ratio finally recorded its first climatic reading. Keep in mind that this is not necessarily a by signal, but rather early evidence that a bearish posture is being established.

The 10-day Trin is still below the 1.35 oversold threshold, indicating that there is still more downside energy in the market.

All major sectors were lower on the day. The BTK was the best of the red majors. The gap remains open from December.

The BKX touched but did not lose the 50% fib.

The SOX settled right at the active static trend line and is now 8 days down. An inside candle Thursday could be a powerful setup going into Friday.

The XAU is also 8 days down and used the 200dma for support. This is a critical level to hold.

The OSX has tested the 50dma three times and so far held. Set an alarm for a break under this support to initiate momentum shorts.

Oil was notably weak. Key support is down at 93 which was the Q1 breakout.

Gold was a source of funds hitting the 50dma intraday.