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Friday, August 7, 2015

Daily update 8/7

Another late day bounce made things look less bad.

Notice the big volume drop.  That signifies sellers were not interested in selling into the weakness. 
Selling decelerated as SPX touched its 200 SMA.  I expect they will be back if we get higher prices to sell into.  SPX is at the lower Keltner channel.  That is a good place to bounce from.  The breadth was -57%.  The new highs dropped again down to 33.  New lows also dropped down to 195.  A trend continuation day.

The futures are trying to find support here at the lower Keltner channel.  Will they accomplish that?  If we get a bounce all the key moving averages are clustered around 2090.  They should provide some resistance.

SPX touched the 200 DMA.  Will the bulls engineer a bounce from that level?  Mondays have been up most of the time this year.  The late day bounce set the stage for the bulls to try.  I guess we will see if they show up.  If not, things are likely to pick up considerably on the downside.  The bears appear to have broken the back of the 100 DMA buyers.  Now the bulls case rests in the hands of the 200 DMA buyers.

The market and sector status pages have been updated.  Have a great weekend.


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The information in this blog is provided for educational purposes only and is not to be construed as investment advice.