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Tuesday, June 10, 2014

Daily update 6/10

Ho hum.  Here is the daily SPX chart for what it is worth.

The 1950 level held SPX in check today.  Breadth was negative and new highs dropped back down to 154.  Most indexes were slightly positive despite the negative breadth.  That suggests money was going into the bigger cap stocks.  I think this next chart shows that pretty clearly.
Quite a stark difference since March between the smallest of the small caps and the biggest of the big caps.  Only 500 of the Russell 3000 stocks are positive.  The market has gotten very narrow.  Time to be careful.

SPX has stalled at resistance.  IWM turned back a little today, but not enough to tell us much.  We are going to have to wait and see what happens.  Do more rally chasers come in or not?  Do we just sit and spin a while longer?  Do people decide to take some profits?  I don't think there is much we can glean from technical analysis at this point.  The market is extremely over bought, but until it does something negative it can keep floating up.


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