{"id":2086,"date":"2010-07-13T05:29:32","date_gmt":"2010-07-13T09:29:32","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=2086"},"modified":"2010-07-13T05:30:34","modified_gmt":"2010-07-13T09:30:34","slug":"pendulum-swings-back-to-sell-on-sp500","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2010\/07\/13\/pendulum-swings-back-to-sell-on-sp500\/","title":{"rendered":"Pendulum Swings Back to “Sell” on the S&P 500"},"content":{"rendered":"

Almost on schedule<\/a>, the pendulum has swung back to “sell” on the S&P 500. The technical setup on the index shows extremely overbought conditions with buying volume falling just as the index reaches for overhead resistance (see chart below). Combine these conditions with the launch of earnings season, a new round of U.S. economic releases (Fed meeting notes and inflation readings), and options expiration, and the market sits atop a potentially explosive situation. <\/p>\n

Assuming traders are still holding a fistful of puts after the fear generated from the last oversold conditions, there could be just enough support for the market to continue drifting under resistance for the rest of the week. If so, a correction is more likely early next week after this protection disappears. Either way, I expect resolution to the downside that will be almost as swift and sharp as the bounce the carried the market out of oversold conditions last week.<\/p>\n

The chart below describes the current set-up (click for a larger view). Note that the NASDAQ has a very similar set-up. The index triggers a short if (once) it violates the lows from Monday (or Friday). Overheard resistance provides a clear stop no matter the entry point.<\/p>\n


\n
\"S&P<\/a>
S&P 500 swings to a bearish set-up<\/figcaption><\/figure>
\nClick for a larger view<\/strong>
\n*Chart created using TeleChart:<\/strong> <\/a>
\n<\/center>
\n<\/p>\n

Be careful out there!<\/p>\n

Full disclosure: no positions<\/p>\n","protected":false},"excerpt":{"rendered":"

Almost on schedule, the pendulum has swung back to “sell” on the S&P 500. The technical setup on the index shows extremely overbought conditions with buying volume falling just as the index reaches for overhead resistance (see chart below). Combine these conditions with the launch of earnings season, a new round of U.S. economic releases … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[62],"tags":[65,1597],"class_list":["post-2086","post","type-post","status-publish","format-standard","hentry","category-technical-analysis","tag-sp-500","tag-technical-analysis"],"yoast_head":"\nPendulum Swings Back to "Sell" on the S&P 500 - ONE-TWENTY TWO: Trading Financial Markets<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/drduru.com\/onetwentytwo\/2010\/07\/13\/pendulum-swings-back-to-sell-on-sp500\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Pendulum Swings Back to "Sell" on the S&P 500 - ONE-TWENTY TWO: Trading Financial Markets\" \/>\n<meta property=\"og:description\" content=\"Almost on schedule, the pendulum has swung back to “sell” on the S&P 500. The technical setup on the index shows extremely overbought conditions with buying volume falling just as the index reaches for overhead resistance (see chart below). Combine these conditions with the launch of earnings season, a new round of U.S. economic releases ... Read more\" \/>\n<meta property=\"og:url\" content=\"https:\/\/drduru.com\/onetwentytwo\/2010\/07\/13\/pendulum-swings-back-to-sell-on-sp500\/\" \/>\n<meta property=\"og:site_name\" content=\"ONE-TWENTY TWO: Trading Financial Markets\" \/>\n<meta property=\"article:published_time\" content=\"2010-07-13T09:29:32+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2010-07-13T09:30:34+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2010\/07\/100712_SP500-275x300.jpg\" \/>\n<meta name=\"author\" content=\"Dr. Duru\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@drduru\" \/>\n<meta name=\"twitter:site\" content=\"@drduru\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Dr. Duru\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2010\\\/07\\\/13\\\/pendulum-swings-back-to-sell-on-sp500\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2010\\\/07\\\/13\\\/pendulum-swings-back-to-sell-on-sp500\\\/\"},\"author\":{\"name\":\"Dr. Duru\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#\\\/schema\\\/person\\\/d9569fde6c701b021a8d958f775be9a0\"},\"headline\":\"Pendulum Swings Back to “Sell” on the S&P 500\",\"datePublished\":\"2010-07-13T09:29:32+00:00\",\"dateModified\":\"2010-07-13T09:30:34+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2010\\\/07\\\/13\\\/pendulum-swings-back-to-sell-on-sp500\\\/\"},\"wordCount\":243,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#\\\/schema\\\/person\\\/d9569fde6c701b021a8d958f775be9a0\"},\"image\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2010\\\/07\\\/13\\\/pendulum-swings-back-to-sell-on-sp500\\\/#primaryimage\"},\"thumbnailUrl\":\"http:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2010\\\/07\\\/100712_SP500-275x300.jpg\",\"keywords\":[\"S&P 500\",\"Technical Analysis\"],\"articleSection\":[\"Technical Analysis\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2010\\\/07\\\/13\\\/pendulum-swings-back-to-sell-on-sp500\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2010\\\/07\\\/13\\\/pendulum-swings-back-to-sell-on-sp500\\\/\",\"url\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2010\\\/07\\\/13\\\/pendulum-swings-back-to-sell-on-sp500\\\/\",\"name\":\"Pendulum Swings Back to \\\"Sell\\\" on the S&P 500 - ONE-TWENTY TWO: Trading Financial Markets\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2010\\\/07\\\/13\\\/pendulum-swings-back-to-sell-on-sp500\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2010\\\/07\\\/13\\\/pendulum-swings-back-to-sell-on-sp500\\\/#primaryimage\"},\"thumbnailUrl\":\"http:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2010\\\/07\\\/100712_SP500-275x300.jpg\",\"datePublished\":\"2010-07-13T09:29:32+00:00\",\"dateModified\":\"2010-07-13T09:30:34+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2010\\\/07\\\/13\\\/pendulum-swings-back-to-sell-on-sp500\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2010\\\/07\\\/13\\\/pendulum-swings-back-to-sell-on-sp500\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2010\\\/07\\\/13\\\/pendulum-swings-back-to-sell-on-sp500\\\/#primaryimage\",\"url\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2010\\\/07\\\/100712_SP500.jpg\",\"contentUrl\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2010\\\/07\\\/100712_SP500.jpg\",\"width\":\"610\",\"height\":\"664\",\"caption\":\"S&P 500 swings to a bearish set-up\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2010\\\/07\\\/13\\\/pendulum-swings-back-to-sell-on-sp500\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Pendulum Swings Back to “Sell” on the S&P 500\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#website\",\"url\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/\",\"name\":\"ONE-TWENTY TWO: Trading Financial Markets\",\"description\":\"Exploring the poetry in financial markets for students of money and economy since the year 2000.\",\"publisher\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#\\\/schema\\\/person\\\/d9569fde6c701b021a8d958f775be9a0\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":[\"Person\",\"Organization\"],\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#\\\/schema\\\/person\\\/d9569fde6c701b021a8d958f775be9a0\",\"name\":\"Dr. Duru\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2018\\\/09\\\/cropped-masthead-header.jpg\",\"url\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2018\\\/09\\\/cropped-masthead-header.jpg\",\"contentUrl\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2018\\\/09\\\/cropped-masthead-header.jpg\",\"width\":900,\"height\":100,\"caption\":\"Dr. Duru\"},\"logo\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2018\\\/09\\\/cropped-masthead-header.jpg\"},\"sameAs\":[\"http:\\\/\\\/www.drduru.com\\\/onetwentytwo\",\"https:\\\/\\\/www.instagram.com\\\/drduru_market_breadth\\\/\",\"https:\\\/\\\/x.com\\\/drduru\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Pendulum Swings Back to \"Sell\" on the S&P 500 - ONE-TWENTY TWO: Trading Financial Markets","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/drduru.com\/onetwentytwo\/2010\/07\/13\/pendulum-swings-back-to-sell-on-sp500\/","og_locale":"en_US","og_type":"article","og_title":"Pendulum Swings Back to \"Sell\" on the S&P 500 - ONE-TWENTY TWO: Trading Financial Markets","og_description":"Almost on schedule, the pendulum has swung back to “sell” on the S&P 500. The technical setup on the index shows extremely overbought conditions with buying volume falling just as the index reaches for overhead resistance (see chart below). Combine these conditions with the launch of earnings season, a new round of U.S. economic releases ... Read more","og_url":"https:\/\/drduru.com\/onetwentytwo\/2010\/07\/13\/pendulum-swings-back-to-sell-on-sp500\/","og_site_name":"ONE-TWENTY TWO: Trading Financial Markets","article_published_time":"2010-07-13T09:29:32+00:00","article_modified_time":"2010-07-13T09:30:34+00:00","og_image":[{"url":"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2010\/07\/100712_SP500-275x300.jpg","type":"","width":"","height":""}],"author":"Dr. Duru","twitter_card":"summary_large_image","twitter_creator":"@drduru","twitter_site":"@drduru","twitter_misc":{"Written by":"Dr. Duru","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/drduru.com\/onetwentytwo\/2010\/07\/13\/pendulum-swings-back-to-sell-on-sp500\/#article","isPartOf":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2010\/07\/13\/pendulum-swings-back-to-sell-on-sp500\/"},"author":{"name":"Dr. Duru","@id":"https:\/\/drduru.com\/onetwentytwo\/#\/schema\/person\/d9569fde6c701b021a8d958f775be9a0"},"headline":"Pendulum Swings Back to “Sell” on the S&P 500","datePublished":"2010-07-13T09:29:32+00:00","dateModified":"2010-07-13T09:30:34+00:00","mainEntityOfPage":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2010\/07\/13\/pendulum-swings-back-to-sell-on-sp500\/"},"wordCount":243,"commentCount":0,"publisher":{"@id":"https:\/\/drduru.com\/onetwentytwo\/#\/schema\/person\/d9569fde6c701b021a8d958f775be9a0"},"image":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2010\/07\/13\/pendulum-swings-back-to-sell-on-sp500\/#primaryimage"},"thumbnailUrl":"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2010\/07\/100712_SP500-275x300.jpg","keywords":["S&P 500","Technical Analysis"],"articleSection":["Technical Analysis"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/drduru.com\/onetwentytwo\/2010\/07\/13\/pendulum-swings-back-to-sell-on-sp500\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/drduru.com\/onetwentytwo\/2010\/07\/13\/pendulum-swings-back-to-sell-on-sp500\/","url":"https:\/\/drduru.com\/onetwentytwo\/2010\/07\/13\/pendulum-swings-back-to-sell-on-sp500\/","name":"Pendulum Swings Back to \"Sell\" on the S&P 500 - ONE-TWENTY TWO: Trading Financial Markets","isPartOf":{"@id":"https:\/\/drduru.com\/onetwentytwo\/#website"},"primaryImageOfPage":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2010\/07\/13\/pendulum-swings-back-to-sell-on-sp500\/#primaryimage"},"image":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2010\/07\/13\/pendulum-swings-back-to-sell-on-sp500\/#primaryimage"},"thumbnailUrl":"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2010\/07\/100712_SP500-275x300.jpg","datePublished":"2010-07-13T09:29:32+00:00","dateModified":"2010-07-13T09:30:34+00:00","breadcrumb":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2010\/07\/13\/pendulum-swings-back-to-sell-on-sp500\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/drduru.com\/onetwentytwo\/2010\/07\/13\/pendulum-swings-back-to-sell-on-sp500\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/drduru.com\/onetwentytwo\/2010\/07\/13\/pendulum-swings-back-to-sell-on-sp500\/#primaryimage","url":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2010\/07\/100712_SP500.jpg","contentUrl":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2010\/07\/100712_SP500.jpg","width":"610","height":"664","caption":"S&P 500 swings to a bearish set-up"},{"@type":"BreadcrumbList","@id":"https:\/\/drduru.com\/onetwentytwo\/2010\/07\/13\/pendulum-swings-back-to-sell-on-sp500\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/drduru.com\/onetwentytwo\/"},{"@type":"ListItem","position":2,"name":"Pendulum Swings Back to “Sell” on the S&P 500"}]},{"@type":"WebSite","@id":"https:\/\/drduru.com\/onetwentytwo\/#website","url":"https:\/\/drduru.com\/onetwentytwo\/","name":"ONE-TWENTY TWO: Trading Financial Markets","description":"Exploring the poetry in financial markets for students of money and economy since the year 2000.","publisher":{"@id":"https:\/\/drduru.com\/onetwentytwo\/#\/schema\/person\/d9569fde6c701b021a8d958f775be9a0"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/drduru.com\/onetwentytwo\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":["Person","Organization"],"@id":"https:\/\/drduru.com\/onetwentytwo\/#\/schema\/person\/d9569fde6c701b021a8d958f775be9a0","name":"Dr. Duru","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/09\/cropped-masthead-header.jpg","url":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/09\/cropped-masthead-header.jpg","contentUrl":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/09\/cropped-masthead-header.jpg","width":900,"height":100,"caption":"Dr. Duru"},"logo":{"@id":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/09\/cropped-masthead-header.jpg"},"sameAs":["http:\/\/www.drduru.com\/onetwentytwo","https:\/\/www.instagram.com\/drduru_market_breadth\/","https:\/\/x.com\/drduru"]}]}},"_links":{"self":[{"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/posts\/2086","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/comments?post=2086"}],"version-history":[{"count":6,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/posts\/2086\/revisions"}],"predecessor-version":[{"id":2093,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/posts\/2086\/revisions\/2093"}],"wp:attachment":[{"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/media?parent=2086"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/categories?post=2086"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/tags?post=2086"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}