Daily update 1/5 The Biggest Stories of 2016? and does yesterday's big drop have long last affects

Weak bounce day.

The market pretty much just waffled around today.  Certainly not the strong day bulls would have liked to have seen.  The breadth was only +55%.  Oddly new highs popped to 104 while new lows dropped down to 91.  I looked at the new high list and it is almost completely financial looking things like Allstate Dep. pfd. (Rep. 1/1000th 6.25% Non-Cum. Perp. pfd. Series F) (ALLF) .  Very few stocks.   It does not look like a sign of strength for the broad market.  Today's bounce failed to get back above the green support line.  That is different then in Dec. when we closed below the line twice.  In those instances SPX was able to get above that line the next day.  That line may be turning into resistance now, but I can't say just yet.

A little after 8 PM the futures tanked.  I don't know what that is about other then that is when Japan opens up. At the moment China is up a little bit and other Asian markets are in the red.  We will have to see if the futures are still down in the morning.  At any rate they are testing support once again.  Will it hold this time?

I heard on TV China said the selling ban on 5% shareholders will remain in place.  That helped keep their market from crashing again.  However, it did not bounce back much.  If people aren't allowed to sell can you really expect them to buy anything?  I think it will take some time over their for this all to shake out. 

SPX is testing support.  Can the bulls pull off another magic trick?  It may take a miracle this time.  A break down below the Dec. lows should target the Aug./Oct. lows.  If the futures manage to hold in this area tomorrow we could end up with a potential short term double bottom.  The market was very good about filling downside gaps in short order most of the time last year.  Maybe it might want to fill this one as well.  Maybe tomorrow will tells us more.

This is an interesting read The Biggest Stories of 2016?

This is some research on big drops on the first day of trading of the year.  What's Next For Stocks After The New Year's Day 1 Hangover?

Bob