SPX closed back above the 18 SMA. Breadth was good and there were 200 new highs today. The early rally started drifting lower in the afternoon like so many days lately. However, buyers showed up at the end of the day today. The NASDAQ and the Russell2000 made new high closes. Lets zoom in to the SPY 60 minute chart.
SPY had the biggest green volume bars it has had since the highs. It closed right about the 50 SMA. Will there be follow through on the upside tomorrow?
The big cap stocks are clearly showing relative weakness. That was really obvious with the Dow today. I have been wondering what is up with that. Is it earnings worries or something else. I ran across this little tidbit today.
So there have been 94 negative preannouncements for SPX this quarter. That is nearly 20% of the companies. Maybe there is some earnings jitters out there.
SPX closed just a bit below 1700. During this pullback there were several days where SPX crossed 1700 intraday, but was unable to stay there. I don't know if that resistance is still there or not. The bulls showed up in force today. If they show up again like that tomorrow then 1700 should not be a major problem.
Bob
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