John Mylant's  Instablog

Tuesday Morning Trade Research

RSI- the RSI is following the trend of the stock. Just dipping into bearish territory, it is supporting the bearish movement of the SPY over the last couple of weeks. Weakness.

Bollinger Bands- The bands are also starting to lean down and this also supports the bearish lean. Not yet at the bottom of the band, the SPY still has room to move down today. (click to enlarge)

MACD- Weakness can especially be seen in the MACD Historgram. Notice the high points are barely above the '0' line while the low points are well below. This is showing more signs of weakness.

Current Events

World stock markets were volatile Tuesday as the initial shock from election results in Europe faded but skepticism grew over whether Greece could form a government capable of fixing its financial mess.

Worries intensified about Greece's ability to stay solvent and remain in the 17-member euro currency bloc.

The smallest gain in U.S. payrolls in six months need not presage the kind of slowdown that bedeviled the world's largest economy for the past two years.

Rising auto sales, improving bank credit and stabilization of housing are among the signs the economy is more resilient now than it was around the same time in 2010 and 2011, according to Marisa Di Natale, an economist at Moody's Analytics in West Chester , Pennsylvania.

"From where we sit right now, we think the economy looks fundamentally stronger," Di Natale said. "Surveys of business and consumer confidence are better, the labor market data looks a lot better than it did last year, even some of the housing data looks better."

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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.