How many times in the last few years have I said in the nightly post that the bulls needed to show up the next day and they did. This was one of the few times they didn't. Breadth was -84%. New highs were 6 and new lows picked up a bit to 100. Volume picked up a bit, but seems rather light for the size of the move down. Selling must not have been quite as heavy this time.
There was a decent bounce going into the close. Futures are up considerably as I write this. While we have red price bars again we do not have a confirming lower close. This looks a bit indecisive or at least I am indecisive on how to interpret this chart.
The daily green/red bar chart is interesting tonight.
The number of SPX stocks with red price bars has dropped considerably. It would be much easier now to get a positive cross. A strong up day tomorrow could do it. This is a clear sign more and more stocks are getting into a neutral state.
The TRIN closed well over 4 today. That has brought out buyers in the past. Maybe that is what has the futures all excited. They are up enough it seems likely they will still be up in the morning. Will people sell into that or not? I suspect they won't. In the absence of bad news I think most investors are hoping for higher prices to sell into. I think it is possible the bounce continues. If we are down by morning then a retest of last week's low becomes likely.
Bob
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