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Bearish Crossovers of the 10- and 20-day MAS
By Maurice N. Walker

* Friday, April 26, 2013

Yesterday the S&P 500 got a bearish cross of it's 10- and 20-day moving averages (MAs), and this morning the Dow and the Nasdaq also got bearish crossovers of those same MAs. The Russell 2000 has had a bearish cross of those moving averages for some time, but three days ago the 20-day MA followed the 10-day MA, dropped below the 50-day MA in a bearish alignment of the moving average trio (see 2nd chart below). All that suggests that this rally is doomed to fail, and increases the odds that this is only a counter-trend rally. We'll have wait and see if prices drop back below the moving averages and set up lower highs. The S&P 500, Dow, and the Russell 2000 all have Head & Shoulder topping patterns in play, which is a bearish pattern (see the chart below). (Posted in the morning).





http://thechartpatterntrader.com/

George.

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