The Ascending Trendline Breaks

Suddenly we have a market that has a very different feel to it. The weakness of the last three sessions has broken the ascending trendline, and volume has increased, albeit not dramatically, as we have moved lower. On Wednesday we did bounce off a likely area of support, then went back down and took another look at it. So it seems we have gone from the very difficult movement of the standoff, as I was commenting upon in the last few columns, to a market that is finding it easier to move downward than upward.

The region around 1780 on the S&P 500 is likely to provide a bit of help, so some rallying from here would not be a surprise, but enough damage has been done now to suggest that we are entering the slide I had been saying would go into in the middle of December. Actually, it has taken so long getting going that I am thinking it may carry closer to year-end. A rally to the November highs would look like a head-and-shoulders and would appear to be a selling opportunity.  It looks as though there is room to make money on the short side here....229 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.