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Tuesday, August 16, 2016

Daily update 8/16

Wow.  A down day.  I thought those had been outlawed.

The volume picked up a little bit, but was still light.  The breadth was -66%.  New highs dropped way down to 107.  SPX ended right at the top of the prior trading range before the 8/5 mini thrust up.  There could be support here.  It might bring out a few more sellers if it continues down.  The more important support is down around 2147. 

The futures are currently sitting right on the key 20 SMA.  Will they break or bounce?

The red line crossed above the green, but remains below 50.  Still neutral here.

There has not been any technical strength to speak of for the last three weeks.  I know the word top has been removed from the English language, but this is what they used to look like once upon a time when they actually happened.  Since we ended the day right on support the bulls may show up again tomorrow.  Even if this is a top forming it could still take more time to complete.  There has been a complete lack of selling pressure since SPX made its new high.  Unless something has changed that could still be the case tomorrow. 


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