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Monday, July 20, 2015

Daily update 7/20 Another strange one

SPX tested above the previous high close and came within 2 points of its all time high.

Nothing unusual about that of course.  However, the breadth was -66%.  Even more strange was that new lows came in at 292 while there were only 108 new highs.  This market is messed up.  Pure and simple.

The futures are really, really extended from the 50 SMA.  We got the first white price bar of this rally.  Losing just a bit of momentum there.  ADX is still on the floor. 

Take a look at these charts.

The small and mid cap indexes are making a lower high at the moment.  The transports only rallied three days and have been sideways the last five.  The weakness in MDY is really the first time in years that index has lagged.  It has been really strong throughout this bull market.  The COMPX is at all time highs even besting its bubble peak from 2000.  However, only 56% of the stocks have bullish point and figure charts.  The sell off earlier this month really whacked that indicator.  The advance/decline line and a whole host of other market internals are showing very large divergences.  Too many to show.

I don't see anything consistent with a market breaking out on the upside.  On the contrary it seems to be screaming at the top of its lungs I am topping.  For the moment the bulls have control, but I think that could change very quickly.


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