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Thursday, June 16, 2016

Daily update 6/16 Bubble News From The Nosebleed Section

Interesting day.  The sellers came out early and started up from where they left off.  However, when SPX got down to 2050 buyers started showing up.  Then came news that a Brittish lawmaker was killed.  There were rumblings about suspending campaigning for brexit.  Wall Street in its infinite search for something positive turned that into talk of suspending the brexit vote.  That caused a ramp that lasted right into the close.  That was not the only strange thing.  In the night the Euro tanked which sent the dollar index soaring.  GLD also started strong making a new high this year.  After the brexit vote getting cancelled rumor came out the Euro spiked up, the dollar index and GLD reversed.  GLD has a rather ugly reversal bar tonight.  But since all this happened basically on rumors that aren't true does it matter?

SPX closed back above the 50 DMA.  That is certainly a positive.  Breadth was barely negative at the end of the day.  New highs were up again to 107.  There might have been some gold  miner stocks involved there.  That daily chart looks like the bulls are trying to engineer a bounce.

How about that for a rebound bar.  The futures ended back above the 100 SMA.  No confirmation of a break yet.  The bulls need to continue the upside pressure.

Despite the rebound and positive close in SPX the red count increased a bit.  Still below oversold levels though.  Obviously it would have been better for the bulls if the red count had decreased.

I think SPX hit support with the VIX over 20 which brought in some buyers.  Those buyers were augmented by rumors of the brexit vote being cancelled.  Those rumors were false.  Where does that leave us?  Beats me.  I would say the market could bounce or roll over and tank.  Tomorrow may be interesting.

This is an interesting read.  Bubble News From The Nosebleed Section


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