On the opposite side we have this index recently bounce off the lower trend line last week after printing a bullish white candle. In theory, that in itself is a buy signal when it takes out the previous 3 red candles, and the fact that it’s a higher low is a bullish sign. The longer trendline from the July ’10 lows has support near 150.
Another bearish sign is the 13/34 moving average crossover has recently crossed, suggesting we’re in entering a bearish time. If this index can string a few more white candles together, these moving averages could flip again, setting up a showdown at the 500 level, which could be a top in the markets in general.