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Tuesday, October 20, 2015

Daily update 10/19 This Is Now The Worst Possible Environment For Stock Market Investors

Another sleepy day.

SPX touched the downtrend line and came within one point of key resistance at 2040.  While the major indexes were slightly negative the breadth was +59%.  I guess what selling there was today was largely in biotech and big cap stocks.  New highs were about the same at 64 while new lows dropped a bit to 16.  Not much new there.

The stall continues as the futures trade in a rather tight range.  There is clear resistance in this area.  Will it roll over or bust higher?

The green count turned up a bit today.  However, it is still below 50 and below the 10/16 count.  Crossing back over 50 strongly would likely indicate another upside thrust.  I don't think this was strong enough today to indicate that. 

Today was day 16 of the current rally.  The 9/17 high came on day 16.  When SPX touched 2039 it turned back down rather quickly indicating there was some sellers waiting.  The daily chart has a couple of toppy looking bars at obvious resistance.  The odds of some kind of pullback happening from here seem pretty high.  The key for the downside still looks like a close below 2022 to me.  If we somehow get through 2040-45 then the 200 DMA around 2060 should be the next major resistance level.  What happens may depend on the news flow.  A sell catalyst from here could get the ball rolling downhill again.

This is an interesting article.  This Is Now The Worst Possible Environment For Stock Market Investors


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