They were doing a pretty good job of cheer leading on TV today. However, at the end of the day the trend indicator is still down and SPX failed to even close above the 6 SMA. SPX has more work to do to get bullish again. Lets take a peak at the SPY 60 minute chart.
SPY had a big green volume bar this morning signaling accumulation. However, SPY found its high right after 10:00 when it hit the 50 SMA. It then went sideways the rest of the day. SPY broke the descending triangle from late last week, but the rally only lasted 30 minutes. We now have a pretty well tested down trend line to work with here. We are above the 18 SMA, but below the trend line and the 50 SMA. Will it roll over or break out above the trend line?
There were 116 new highs and 83 new lows. That is not a lot of new highs, but that is a lot of new lows on a gap up day this close to all time highs. Both breadth indicators remain negative. Oddly the VIX was positive today. I can't find anything that indicates we have made an important low yet. We will have to see if the bulls show up again. I am a little suspicious since SPY found its high so fast.
We are technically still in a short term down trend. SPY needs to get above the hourly 50 SMA and stay there. SPX needs to get above the 18 DMA and stay there. If it winds up rolling over and breaking 1775 then all today did was provide downside fuel. A break down below today's low on SPY could start the ball rolling down hill again.
Chart practice has been updated with AMT the stock tonight.
http://traderbob58-chart-practice.blogspot.com/
Bob
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