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Friday, December 5, 2014

Daily update 12/5

Yet another new record close on SPX.  Did it feel energetic to you?  It didn't to me.  Here is the chart.

Today's close was below the intraday high of the last two days.  Not exactly setting the world on fire there.  Breadth was barely positive.  There were 199 new highs and 144 new lows.  Once again we have way too many new lows with SPX at the highs.  As soon as SPX climbs above 2075 it just stops.  At the moment there is very little if any interest in chasing price higher.  Since it lingers in that area this is a case of no buyers rather than stiff resistance.  Generally it takes a pullback or a news event to get the buying interest back up again.  Today's positive surprise in the job numbers was not enough to do it apparently.  The slow creep is caused by a lack of selling interest.  The trouble with this type of pattern is that a news event can happen at any time that causes selling interest to pick up. There may not be enough buyers to soak it up because they have been so busy piling in every time SPX drops 2-3 points from its high. How do you predict if/when such a catalyst will come along? 

Short term technicals show the market is running on fumes.  However, it has done this before and kept going up until one day it didn't.  Unfortunately nobody gave me the calendar with the scheduled pullback start date.  Until the market does something other then go up there is not much to do.  Just be aware that there could be a big down day out of this some day out there in the future at some unknown time, LOL.

The market and sector status pages have been updated.  Have a great weekend all.


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