The market has been bifurcated for quite some time with froth leading lower while the Sp and Dow try to hold up the market. Money has been rotating in to the Sp because that’s where lower froth, lower p/e and higher dividend stocks live. Big money hasn’t made the big move yet of distributing out their plays. While they are acting more risk averse, they still have been playing as if they want to spend more time with the world of the Sp 500 stocks. We know this because while the Nasdaq has long ago lost the 20, 50 and 200 day exponential moving averages, the Sp 500 before today was above its 50 day exponential moving average. It had lost the 20’s but was still above the 50’s and well above the 200’s which lives at 2023. The 50’s at 2048. So only if the Sp were to lose 2048 and then 2023 would the market be in big trouble. It’s very close to forcefully losing 2048 which is interesting since losing the 50’s would be a change of behavior. That would be a big red flag even though it would still be above 2023. The 50’s are more important technically than the 200’s.

So here we are. Finally at a big inflection point in this market. The Nas already broken and down 6% for the year. Below all the key moving averages. If the Sp 500 joins the party then the bears will be in control of this market and we all know how long a time it has been since that was a reality. So we watch and see if the bears can do what they need to on Monday morning. They need a big gap down and run lower all day and then they will have the game all to themselves. I’m not sure the bears would know what to do with some good news, it has been so long but the opportunity is there. They don’t need a gap up on Monday. They need a huge gap down and go. No more excuses. Those days are over. The time is now. It’s time to take advantage of their opportunity. It should be easier this time since they have the Nas already broken. Again, their time is now. NO MORE EXCUSES. Get it done. Interesting times. We’ll see if the Fed here or the fed central bankers overseas find a way to announce something over the weekend since they all know the market is facing trouble here. Kuroda in Japan the likely one to announce something. Keep an eye out for that.