Market Mood Caution Lights

There were caution lights flashing that it wouldn't take much (just single digit S&P points) to cross the line into a noteworthy pullback.  The market opened a few points below that line, but then continued sharply lower in a noteworthy pullback.  The MM MACD remains in swing sell mode as long as the market stays below 3848 SPX.  MM Trend Trader is still looking up and considers this a temporary pullback with the larger trend to be resumed shortly.  The market would need to get above 3841 SPX today to signal this pullback is likely over.

MMI was looking up for the day today and it's certainly not looking likely at the moment that the day will close up.  Tomorrow's MMI is the same as today closes.  If the market closes down, but is clearly rallying into the close there is no call for tomorrow.

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Dr. Cari Bourette is an analyst at ElliottWaveTrader.net, where she provides her proprietary market mood analysis in our flagship service, "Avi's Market Alerts."