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Wednesday, October 29, 2014

Daily update 10/29

Hmm, I wonder what that minus sign means in front of the change in SPX today.  Here is the chart.

SPX got .01 points above the July high and turned down.  For the moment it looks like 1991 is resistance.  Breadth was 57% negative.  Not especially heavy.  There were 189 new highs and 35 new lows.  The number of lows remains elevated so far.  Volume increased today so the net result was a slight bit of distribution.  Yesterday the transports made a new all time high and the NASDAQ 100 was just a smidge off of its bull market high.  Today those indexes were the weakest of the majors.  Will those leading indexes hold near the highs or will profit taking overrun rally chasers?  Lets have a look at the futures chart.

The futures ended the day with a white price bar.  On this rally so far there has been no follow through on the down side to white bars.  The bulls bought the dip and pushed prices higher.  I don't know if that will happen this time or not.  The market is extremely overbought short term.  Will people show up and chase it even higher?  There could be enough resistance in this area to at least cause a pause.  Very often what happens on FED day is reversed the next day.  However, we really didn't do anything to reverse.  It may take a day or two for people to digest the end of QE.  They may decide they love it or hate it.  Maybe nobody ends up caring.  I don't see anyway to predict what happens the rest of the week.  We are overbought in possible resistance.  Could be a battle here.


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