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Tuesday, April 9, 2013

Daily update 4/9

I am shocked.  I lived long enough to see the market go two days in a row in the same direction.  SPX made another attempt at the all time intraday high and got within 3 points for a second time.   However, it fizzled out.  Here is the daily SPX chart.

Volume increased over yesterday, but SPX still could not break into new highs.  It tested the 4/2 high, but closed a bit lower then it did that day.  Will it crack it tomorrow or get turned back again?  Lets zoom in to the SSO 195 minute chart.

I have added a red resistance line at the highs.  The possible head and shoulder pattern is now a possible double top.  Not much new information here.  Will we break out to the upside or not? 

The negative divergences look more pronounced then at the 4/2 high.  There were 209 new highs today while we had 270 on 4/2.  A number of indexes are considerably weaker then they were on 4/2.  I don't see any sign we are building up a head of steam to break out.  It looks more like the market is weakening internally.  I guess we will see what happens.

Bespoke did some charts showing how breadth of defensive sectors is much stronger then cyclical.  There are quite a few charts in the article you can peruse here.


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