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Thursday, May 28, 2015

Daily update 5/28

That was an odd day.  Early in the day every rally got sold and every dip bought.  There was a little push up into the close, but it was not enough to get SPX positive.  Today was probably month end window dressing for the funds.  I guess they had some buying and some selling to do.

SPX ended just below the 6 SMA.  New highs were about the same as yesterday at 64.  However, new lows increased to 58.  Breadth was -57% which was considerably better then it was most of the day.  The late day rally helped the breadth statistics quite a bit.  Not really much new information in this chart.

The futures were right at the 18 SMA at the 4 PM close.  They popped up just a bit after hours.  We got a green bar so we have something to work with now.  Quite often red bars in a short term up trend bring out the buyers.  Green bars in a down trend bring out the sellers.  We have not really established a trend lately.  If the sellers come out tomorrow it should be a good indication we are in a short term down trend.  If the bulls come out to play tomorrow we should test the highs again.  I see ADX is falling on this bounce yet again.  Up moves seem to have no trend behind them since early March.  If we are to break out on the upside and go higher I think ADX needs to play along and show some trend strength.

Most Fridays this year have been down.  The weekly pattern is a bit messed up with Monday off.  Hard to say if that pattern will play out tomorrow or not.  The market continues to try not to decide whether to go up or down.  Sooner or later something has to give.


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