The resistance from last week was not just Aug. option related it looks like. SPX ran up to .4 of that high early on and turned back. It made the low of the day in the afternoon which is not something we have been seeing much of over the last several weeks. The breadth was +64%. It was +79% at 10:00. Even with all that strength resistance held. New highs jumped up to 219, but that is nothing really to shout about at all time highs.
The futures ran right up to their prior high early this morning and stopped. They worked slowly but surely lower the rest of the day.
The green count made no upside progress despite the up day. Still in limbo here.
Last night I wrote "On 8/2 we had a dip that caused negative crossovers and the bulls responded with a little buying. However, they failed to push price very far. Now the internals are getting negative again, but we have not had much of a down move to bring in buyers." The negative crossover sparked some buying. However, as soon as SPX got close to its prior high the sellers squashed the rally. I would guess this resistance will hold for now because we did not get a deep enough pullback yet.
Some people say the new money market rules the SEC is implementing in Oct. are the reason the LIBOR rate is rising. Certainly possible. Here is a good article on the changes and possible consequences. New SEC Money-Market Fund Rules Forcing a Liquidity Squeeze?
Bob
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