SPX touched the 50 SMA this morning and the bulls stepped in to support the market. It was not a particularly energetic bounce. We had 65% of stocks positive and only 32 new highs. It is starting out like a dead cat bounce. We will have to see what develops tomorrow. There is still room to bounce up to the 18 SMA. Lets zoom in to the SSO 60 minute chart.
We had a pretty strong bounce off of that SPX 50 DMA. The rest of the day was spent going sideways, but the bulls kept supporting price. Price is right at the bottom of the 18 SMA here. Does the bounce continue or get rejected? I guess that may depend on the news flow. This chart looks to me like it wants to go up some more. That was a pretty steep move down so more of a retrace is certainly possible. Maybe we can get another up day. If we start down instead, an hourly close below this afternoon's low would likely be a sign the down move is restarting.
I ran across this chart and found it interesting. I think there is a lot of financial engineering in the earnings today. I think this chart shows that to be true.
If earnings are so great why is EBITDA below the prior peak?
Bob
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