Market Review 7/24 SPY Trendline Broken

You know that line in  Casablanca where Humphrey Bogart says "play it again Sam."  That is exactly what we got in the market today the same thing we have seen the last two days Europe worries again.  The focus is on Greece and how they may need further debt restructuring all the ECB needs in light of the rising rates in Spain and Italy, but as I said in yesterdays post we needed to watch the SPY for a break and if that break was followed by volume.

If  i'm a bull I would be concerned by two things.  One, the break in the trendline. Two, how much volume came with it.  The volume was up 20% over yesterday and is the highest volume total in 14 days.  When a spike comes on a move down it maybe foreshadowing a bigger move down.  The other noticeable feature on this chart is the price was not supported by the trendline.  Since the rise in June we have seen the market support this move by seeing higher lows, but that is no more.  Europe is stirring the bears and it would be wise to stay out of bullish trades for now as it looks to be that the European jitters have the market on the brink of a move lower.



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