Both the S&P indices moved higher yesterday and in doing so moved above their 50 hour moving averages. It represented a short-term win for the buyers but with “work to do” to increase the bullish bias.

That was not meant to be as stocks gap lower and have continued there move to the downside. Both the S&P and NASDAQ indices are testing/breaking below their 50 hour moving average increasing the bearish bias from a technical perspective. Going forward it would take a move back above those moving averages to give the buyers more confidence. Absent that and the downside is the favorite directional bias for US stocks.

I speak about it in the video above.