Silver, iShares Silver Trust ETF broke down below its lows of the previous 3 months on 4/23/12, confirming a downtrend for the medium term.
Italy, Germany, and France fell 2.5% to 3.5%.
Emerging Markets Stocks ETF Relative Strength Ratio fell below its lows of the previous 3 months, reconfirming its bearish trend.
NASDAQ Composite fell 1.00% on Monday. NASDAQ Composite/S&P 500 Relative Strength Ratio fell below the lows of the previous 6 weeks and closed further below its 50-day SMA. Absolute price also fell below the lows of the previous 6 weeks and closed further below its 50-day SMA, confirming a significant downside correction.
The S&P 500 Composite fell 0.84% on Monday. NYSE volume fell 5%, suggesting relatively weak demand for stocks.
SPX is down 2.95% for April, month-to-date, despite widely-hailed earnings beats.
SPX crossed below its 50-day SMA again 4/19/12 and remains below it. SPX has closed below its 50-day SMA 7 of the past 10 trading days. SPX has closed below its 20-day SMA each of the past 13 trading days.
MACD based on SPX fell bearishly below its Signal Line 3 weeks ago, on 3/28/12, and has remained below every day since.
On-Balance Volume based on SPX has demonstrated a bearish divergence since OBV peaked on 3/19/12.
Volatility has increased over the past 5 weeks, suggesting doubt replacing bullish complacency.
A variety of technical indicators have been demonstrating waning bullish momentum for stocks. A downside correction or shakeout has seemed overdue, according to past norms.
Following unusually large price run ups, such as Q1 2012, stocks become more vulnerable to sudden reversals. Potential Reward relative to potential Risk remains unattractive for stocks at this time.
The SPX chart broke down below the rising lower boundary line of a Bearish Rising Wedge on 4/5/12, thereby giving a clear bearish chart signal. This chart pattern suggests that stocks could erase all gains since the 10/4/11 low of 1,074.77 on the S&P 500.
