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Thursday, October 27, 2016

Daily update 10/27

They could hardly wait to get the market open so they could sell today.  No waiting until 10:10.

The gap up this morning took SPX up to the 20 SMA.  The sellers started immediately after the open though.  That sent SPX back below the 100 SMA.  This looks headed back to the 2120 support area again to me.  Breadth was -70%.  New highs and new lows were 68.  That is the most new lows since the low day of the brexit sell off.  The prior occurrence of that many lows was way back in Feb. That seems significant.

The futures shot up once again on merger news.  They got above the trendline and the 20, 50 and 100 SMAs, but found nothing but sellers.  A strong looking rejection by the bears.

The red count almost got to 50 today.  Close enough to give the edge to the bears now.

The mid Oct. bounce from 2120 got the short term bull pressure lines to have a positive cross, but not the longer lines.  The short term lines crossed back negative today.  They are all bearish once again.

All the merger news ($133 billion of deals) this week helped to bring in buyers.  Otherwise, I think the market would be lower then it is.  There have been deals every day this week.  However, they rarely announce deals on Friday.  AMZN missed earnings and was down 5% which won't help either.  The internals look like the bears have taken control so tomorrow could be a bit of a downer.

Today turned the short term trend of R2000 down.  SPX and COMPX didn't quite do enough so they remain neutral.


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