STOCKS UNDER HEAVY PRESSURE -- 50-DAY LINES ARE BEING BROKEN -- SEPTEMBER LOWS MAY NOW BE RETESTED

John Murphy
by John Murphy,
Pioneer Technical Analyst

50-DAY LINES ARE BEING BROKEN... Stocks are under heavy selling pressure.   The three charts below show three major stock indexes falling back below their 50-day moving averages.   The recent rebound took stocks close to their highs formed in early September.  With that rebound having failed, technical odds now suggest that prices could retest the lower end of their recent trading range near September lows.  All eleven sectors are in the red with defensive stocks holding up a little better.  A drop in bond yields shows investors buying some bonds for protection.   Chart 4 shows the CBOE Volatility (VIX) Index reaching the highest level in seven weeks.

Chart 1
Chart 2
Chart 3
Chart 4
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John Murphy
About The Author:

A trailblazer in intermarket analysis, John authored key texts that shaped technical trading and helped generations of investors decode market trends using charts and correlations. Learn More 

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