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Thursday, July 28, 2016

Daily update 7/28 Why MainStreet Isn’t Buying Obama’s Economic Story


If the range was not small enough already today was an inside day.  Breadth was slightly negative.  New highs came in at 216 near where they have been lately.

The futures spiked up to 2168.5 right after the European open and started down right through to the NY open.  They found their low slightly above yesterday's low.  The market mounted a slow grind higher until just before the close.  The futures hit 2167.5 and sold off into the close.  Just a reminder that the 2168 resistance level came from the 7/14 overnight high.  It has held for two weeks now.  This has gone on long enough it will probably take an overnight gap up and over the resistance to defeat it.

Tonight the BOJ announces their next stimulus plan.  You might recall it was speculation about helicopter money from the BOJ that caused the break out in SPX in the first place.  The BOJ later said that was not going to happen, but did talk about some more stimulus.  If the announcement pleases the market enough that might cause the gap up and over resistance.  If it falls short of expectations then we might start a pullback.  I suspect that announcement is the reason for this current sideways action.  It might break lose one way or the other tomorrow.

Today turned the short term trend in SPX to neutral.  The other indexes remain in uptrends.

This is a pretty good article.  I don't agree with the statement under housing section that the government spent trillions on the housing market.  Most of the rest of it is pretty good and lots of great charts.  Why MainStreet Isn’t Buying Obama’s Economic Story


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