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Tuesday, February 9, 2016

Daily update 2/9

Consolidation day.

Hanging at the lows.  The breadth was worse then one would think for the small move in SPX at -68%.  New highs actually increased to 70.  New lows also increased a bit to 471.  The bulls are putting up a little bit of a fight just above the Jan. low. 

The futures are trying to find some support.  At the moment this looks like a continuation pattern. 

The market is  not short term oversold enough to cause a technical bounce.  That likely means the bulls need some good news to spark enough buying to get a decent bounce going.  Yellen speaks tomorrow in front of congress.  That is a bit of a wild card.  Unless she indicates they will forget about raising rates any further I would expect the market to eventually do a full retest of the Jan. low. 

I saw some headline about the IEA saying the global oil oversupply is getting worse not better.  That put downward pressure on oil and likely kept stock bulls away.  I think it might be tough for oil to get much of a bounce going for now. 


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