There was a little bit of buying and selling today, but not much movement. Breadth ended at +59% after being +67% early in the day. There appears to be some resistance in this area still. However, volatility is contracting so we are getting to an equilibrium point. New highs came in at 103 similar to the last few days. New lows dropped down to 20 as bonds had a positive day.
As you can see from the futures the volatility including overnight action is really quieting down. The 20 SMA is holding at support, but has not provided a launch point yet.
The transports managed to close back above their prior high close (re-break out), but are below their prior intraday high. The jury is still out on whether that break out will succeed or fail. It seems like the bulls are just waiting to get their chance to run the Dow up to 20000. Unless some kind of sell catalyst comes along that seems inevitable. I guess we wait until it happens and see if there is any reaction to it.
There is some pretty interesting charts and data in this one. Fed’s Fantasy Vs. Reality 12-16-16
Bob
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