Reversal Day and Month

We have confirmation on the hourly chart that a new short-term wave down began at closing. As I am writing this, ES futures also turned downwards displaying the beginning of a new short down-trend wave on their hourly chart.

On the daily chart, we observe $SPX transversing the 50 EMA from above to below and closing below this important moving average ($DJI behavior was even more bearish). 

We use Stoch(5,3) in a down trend market to detect the end of upwards retracements: indicator action  suggests that the recent upwards move that started on June 24 may have ended today. 

In both $SPX and ES daily charts we await for confirmation of a new wave down (we do not have confirmation of trend change in the daily like we see on the hourly chart).

Also, we had a significant trend change in the monthly chart today: June displayed a change of direction downwards, of an uptrend that began in January 2013, after hitting overbought in May 2013. To this end, weekly $SPX charts show a downward trend  since the week of May 20, 2013.

All and all, we are waiting for confirmation of a new down trend on the daily chart will signal the beginning of a decline towards 1,500 on the $SPX - perhaps next week. 

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