Charting the Markets: The S&P 500 Is Following a Script

It wasn’t enough that October 29 was the 97th anniversary of the Crash of ’29. It has been so long since then it was probably the furthest thing from investors’ minds, but with markets failing to rise up this past week and finishing down 1,000 points on the Nasdaq 100 on October 30, any day like this feels like a market crash is happening.

With interest, the S&P 500 had the exact trading week as the prior one, up Monday-Wednesday and down hard the last two sessions of the week to put the markets in the hole. That is not a pattern the bulls want to repeat for a third week, especially if there is a lower low associated with it.

We have been talking about the chart and how bearish it had become over the last six weeks. MACD remains on a sell signal and money flow is about to go negative for the first time since March. Momentum has already rolled over. The only thing slightly positive would be the price chart, which on the weekly is teal.

This was a poor monthly close, the onus is now on the bulls to turn things around the last two months of the year.

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Posted by Bob Lang

Bob Lang is one of the country’s top options traders, an expert market technician, and a highly sought-after mentor and teacher. He is a private trader in equity and option markets and created his own hedge fund and options trading company called Explosive Options. He is also founder and Chief Options Analyst at Aztec Capital, LLC. He has been a regular contributor to TheStreet Pro's paid subscription products since 2009. Lang is both a short-term trader and long-term stock investor. He utilizes technical and fundamental analysis to find investment opportunities. His coverage for TheStreet Pro specializes in options trading, stock investing, and technical analysis. One of Lang’s claims to fame is his creation of the acronym FANG to describe the top tech companies at the time (Facebook, Amazon, Netflix, and Google). The acronym has since expanded considerably and is still widely used today. He is the author of the book “Know Your Options” and holds an MBA from the University of Redlands. When he’s not providing financial commentary for TheStreet, he can be found on the tennis court, reading, or traveling.

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