Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Jeff Cooper: Is the Latest Market Selloff a Setup or Set Up?


The important 3 Day Chart has turned down.

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

The SPX has turned the important 3 Day Chart down for the first time since the August low.
Why? Because it shows 3 consecutive lower daily lows. This is not the only way the 3 Day Chart can turn down. It can also occur on trade below a prior 'circled' 3 Day Chart low.

This turn down is occurring roughly in tandem with the 50 dma.
It's a 'picture perfect' set up.
Especially going into quarter-end.
However, given substantial divergences and distribution days, the setup is not so clear cut---especially given seasonality.
So, while a rally phase may play out---potentially even to a new all time high. If this morning's low is broken over coming hours/days, the ensuing move is likely to be powerful on the downside.

Twitter: @JeffCooperLive

Get Jeff's commentary plus day & swing trading ideas each day with a FREE 14 day trial to Jeff Cooper's Daily Market Report.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos