Every time the futures dipped down to 1801 this week the bulls rushed in to buy. However, at 1807 the buying came to a stop. At this price level that is an extremely narrow range. In the last 8 trading days SPX has managed to gain a whopping 9 points. Not exactly an upside explosion going on. Like yesterday the strength today was in small caps and tech. Lately strength has rotated around to different sectors while SPX itself has clearly struggled to go higher. It appears to be more a lack of buyers then selling pressure. Dips have been very short. Whether that is a problem or not depends on whether something comes along that increases the selling pressure. That is kind of the gist of the problem with a market running on weak internals. If no sell catalyst comes along the market crawls to the upside. If something does happen price can fall rather dramatically. How do you know if something is going to happen or not?
There appears to be support at 1800 the last few days. A close below that would be an early sign of potential trouble. The real key level is still 1775. Enjoy the ride, but be vigilant just in case.
Happy Thanksgiving to all that it applies to,
Bob
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