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Tuesday, March 15, 2016

Daily update 3/15

Another pause day.

Dip buyers came in on the opening gap down and held the market up all day.  Despite the small down move in SPX the breadth was a very negative -72%.  Small caps were hammered pretty hard.  They also have been lagging for the last week and have turned their short term trend neutral.  Volume was even lighter then yesterday.  A little game of wait and see it looks like.

The 20 SMA is catching up to price.  It will either kick the futures higher or end up being broken on the downside. 

The green count slipped a little further today.  The bulls need another thrust pretty soon to keep the rally going.

Neither the bulls or the bears seem very motivated at the moment.  That may change after the FED meeting tomorrow.  There is some talk the FED may open the door for another hike at the June meeting.  One might think that could cause some selling.  However, lots of actions by the FED in recent years that might ordinarily cause some selling haven't.  We will just have to wait and see what happens.  The BOJ just had a meeting and decided to do nothing.  Tomorrow will clear the decks on nearby known major central bank meetings.  That in itself could spur some profit taking.  The bulls grip is getting very tentative.  They could lose it pretty quickly.


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