Daily update 7/8 NYSE trading halted for several hours

Got to love those software glitches.  At least it does not happen very often to the NYSE.  I guess the last time was in 2009.  All I know was that it had been so long I could not remember when it was.  I suspect it will be a long time before it happens again.

SPX sets a new closing low for this pullback.  It also closed below the 200 SMA.  Since the high we may be tracing out a near perfect ABC pullback.  If that turns out to be the case it should end up invalidating the head and shoulder pattern.  The breadth was -80%.  Lots of selling pressure there.  That is just about where it was before trading was halted so I don't think the halt affected that.  The new highs were 16 and lows were 215.  The halt probably affected those numbers.  The TRIN closed at 3.31.  It was 2.69 before the halt.  It may be slightly affected but it was high enough to signal a probable bounce before. 

The futures closed below the rectangle but they never did get below the recent lows.  They are up a little bit after hours.  Getting back up into the box tomorrow is important for the bulls.

Both SPX daily and the futures chart ended the day with blue price bars indicating price was below the lower Bollinger band and extended.  With the TRIN over 3 at the close I think the odds of a bounce tomorrow are pretty good.  The daily chart looks like a short term bottom just waiting to happen.  By a number of different indicators it looks like we are the most oversold we have been all year.  The bulls just need the news flow to cooperate.  I think if we can close positive tomorrow we will likely have a short term bottom.  If we keep going down we could have a mini cascade so stay alert.

Bob