SPX bounced off the 18 SMA, but did not manage to close above the 6 SMA. Breadth was 61% positive which is not very exciting after a three day pullback. New highs were 145 versus 83 new lows. Bulls would have liked to have seen new lows drop below 50. The futures gapped up and promptly sold off only to rally again mid day. At the end of the day they were lower then the open. That made a hanging man candle on SPY. That should be bearish of we break today's low. Here is the SPY 60 minute chart.
SPY actually closed above the 50 SMA for three bars today. However, it never closed above the first bar's high to confirm an upside break of the MA. The last candle sold off back below it. That leaves us in the middle of nowhere for tomorrow. Today was not strong enough to say it was a rally kick off. Even though SPY closed back below the 50 SMA it still needs confirmation that a down move is resuming. A break of today's high should test the all time high. A break of today's low probably targets the daily 50 SMA.
Bob
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