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Wednesday, July 29, 2015

Daily update 7/29

Upside follow through.

SPX is back above all MAs.  Breadth was another strong day at +69%.  New highs came in at 65 while new lows dropped way down to 76.   Today completely alleviated the short term oversold condition.  Volume was above average once again.  We ended just below the key 2110 level which SPX has not been able to stay above.

The futures poked their head through the 18 SMA.  They need a higher close to confirm a break.  The indicators remain negative for now.  The bulls need to keep pushing prices higher.

Now that we are back up into resistance will the sellers show up again?  My guess is they will.  While we have had many sharp V bottoms in this bull market, that has not been the case this year.  Every attempt has been aborted without making new highs.  I believe this is just a technical bounce off the 200 SMA and it will poop out just like the others. 

Despite beating estimates FB is down on earnings.   That is one of the few remaining strong stocks.  That might have negative implications for the market.


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