I did not think it would happen, and certainly not this fast, but it did. This is why we need to pay attention to the macro situation...especially in the doldrums of summer. SiriusXM is actually flirting with the 100 day EMA at $3.18!
SiriusXM closed down on higher than average volume. Reset the technicals... we now have to contemplate how ugly this can get. We are darn close to the 100 Day EMA and one could argue that we are flirting with it. The strength at $3.24 was thought to be strong (and may be), but we now have to move that strength down a notch to $3.18.
The EMA's are looking more bearish. Caution flags are up across the board, we now have three warning flags. There is a cushion down to the 50 day EMA, but if this equity is giving up a nickel, or worse yet a dime at a time we need to be ready.
We want to see volume dry up on the down side. That means we are looking for light volume of under 40 million shares and preferably close to 30 million. If we can get that it will be much easier to gauge a bottom.
Support and Resistance
Exponential Moving Averages