The gap up found a few buyers until a little after 10 AM. The sellers came out and while they did not slam the market they were hitting the bids constantly. While the breadth was +58% the down volume was higher then the up volume. While new highs increased to 79, new lows were higher at 126. Today looked like a sneaky distribution day. SPX got just 1 point above the .786 retrace level when the selling started. This still has the potential to make a lower high here.
Last night I mentioned the overnight high was never breached during the trading day yesterday. Today the futures got up above that high for a while, but at the end of the day they were slightly below it. Interesting, but inconclusive. If we end up turning down from here on Monday it will be a lot more interesting.
The green count got a positive cross today, but is still well below 50. Contrast that with day 5 off the early Oct. low when the count was 81. Despite the 3% move up there is very little vigor to the move.
The McClellan oscillator got positive today, but just barely. On day five off the Oct. low it was a super strong 184 instead of 4. Quite a difference. The 10 DMA lines are still negative.
There is clear resistance here. The breadth was +72% early in the day and the sellers just kept hammering away at it. While the market closed higher it really did not look like a particularly good day for the bulls. Maybe it was just option expiration shenanigans. Internals are not particularly strong and SPX stopped at the .786 retrace level. This qualifies as a test of the Oct. high whether we get up there or not. It still looks like this market could tip over pretty easily so I don't know if we will make it or not. Next week will be interesting one way or the other.
The market and sector status pages have been updated. Have a great weekend all.
Bob
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