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Tuesday, April 7, 2015

Daily update 4/7 No buyers

SPX tested the 3/30 high multiple times today, but failed to find any buying interest.  That lack of buyers caused a sell off into the close.

Volume was very light which highlighted the lack of buyers.  It also indicates it did not take much selling pressure to send SPX red on the day.  Clearly people were not anxious to commit new money in front of earnings.  We will have to wait and see whether earnings send us higher or lower.  Breadth was -53%.  New highs dropped down to 109. 

The futures got above the 100 SMA this morning, but once again failed to stay there.  The afternoon candle was a bearish engulfing bar suggesting there could be more selling pressure tomorrow.  Price hung around at the highs quite a bit of the day, but nobody was interested in pushing price.  When that became evident in the afternoon a few sellers showed up.  Unless the bulls can get price back above the 100 there is nothing to discuss on the upside.  A break of the March lows is likely to open the flood gates. 

The bears reached out to grab hold of the market this afternoon.  If there is downside follow through in the morning I think they will have control once again. 


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