SPX has a gravestone doji on a slight increase in volume. The bulls showed up early in the day and gave a lift to SPX slightly above yesterday's high. Will the collapse into the close have any follow through tomorrow? The daily chart has a little bit of a short term top look to it. I don't know if it is possible for the market to go down ever again though so we will have to see what develops. The 18 SMA has risen above the key 1775 level. That adds extra importance to a break of that level as SPX would be below that key SMA. Lets take a peak at the SPY 60 minute chart.
SPY closed below the 18 SMA. There was quite the volume surge on the sell off into the close. Climbing back above the 18 SMA tomorrow should be bullish and could continue the up move. An hourly close below today's low could mean a pullback is starting. Just keep in mind the 50 SMA might provide support.
The daily chart looks a little iffy and the market is dealing with some round numbers. It may take a few days to decide what to do. Do people feel comfortable bidding up prices from here or not? There were 188 new highs and 58 new lows. The new lows remain unusually elevated. It may turn out that is important in hindsight.
Bob
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