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Friday, October 7, 2016

Daily udpate 10/7

Most of the biggest up days the last few months have been on employment Fridays.  Not the case today.

The sellers went to work right after the open.  However, as we got below the 20 DMA the dip buyers showed up once again and rescued the market.  Price remains trapped between the 20 and 50 DMAs.  The breadth was -67% which was pretty broad for the amount the market was down.  New highs dropped way down to 57.

The upper trendline appears to be meaningful, the lower trendline not so much.  The main support appears to be the 200 EMA (dashed green line).

Both counts increased a bit today and both remain below 50.

The bulls have held the market up, but have not been able to get any upside going above the 50 DMA.  We should get a fairly good move when this pattern breaks.  I am pretty sure we will not stay here between the 20 and 50 DMAs forever.

The peak of the hurricane has passed by me.  We probably had a period of sustained winds in the 30-35 range.  Not as bad as Hermine was.  The damage reports I have seen show the damage is limited to the immediate coast line.  The stronger winds stayed just offshore.  The damage here in Fla. is nothing compared to what would have happened if the storm had tracked 20 miles further west.  I would say we dodged a bullet.

For your weekend reading.   Both are very interesting.
The Noose Is Tightening Quickly On The Global Economy
Just Say No!

The market and sector status pages have been updated.


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The information in this blog is provided for educational purposes only and is not to be construed as investment advice.