SPX tested down to the 20 SMA and our support line early this morning. However, selling pressure dried up and the dip buyers came out in force when oil rallied after the inventory data. Oil up stocks up. The breadth was +60% so there was broad participation in the bounce. New highs are still low at 44, but up a tad. New lows also picked up a bit to 71.
The futures made it all the way down to the lower Keltner channel early this morning before launching hard to the upside. This keeps the bulls in control.
Today put a whack on the green count. It is down out of the overbought range, but still above 50. Internals are confirming price that the bulls are still in control
The bulls kept the dream alive of reaching SPX's 50 DMA. The 50 has come down to the 2/22 high so theoretically SPX could actually hit it without making a new high for this rally. I would think that should make it easier to achieve.
Today probably made a few more skeptics into believers of the rally. That is how bear market rallies work. Suck em in then bury them. Lets see how far the bulls are willing to push it.
This is a very good article on why growth is so slow. It does a better job explaining the situation then I ever could. Debt vs Growth: Correlation or Causation
Bob
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