The last three trading days SPX found its high in the first hour then traded sideways to down the rest of the day. There is still resistance in this area. The breadth ended barely positive after being +64% early in the day. Considerable selling into strength. New highs were once again below new lows 81 to 117. It is quite possible the resistance here is very significant. There was a lot of trading activity here all year before the Aug. break down.
I marked that overnight high I have been talking about with a red line. As you can see the futures have been unable to end the day above that high. We are going to break out above it or reverse some day. Until then expect some slop and chop. Unlike the rally in Oct. ADX is not rising this time. One more sign of a lack of vigor in this most recent move up.
The green count ticked up a bit again today, but is still below 50%. While it is improving it is not giving us a true sign of strength yet.
While SPX has not been able to get above the .786 retrace level it has not rolled over either. It is in limbo here and could still go either way. Closing below 2078 would be an early warning of a possible roll over. The key 200 DMA is at 2065. Do the bulls have enough juice to break through reistance?
Bob
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