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
Bob
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