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Wednesday, December 28, 2016

Daily update 12/28

I guess the pension funds decided to start unloading their excess stocks today. 

Bob Pisani was running around today saying there were no bids.  The "why buy now" theory was in full force today.  It is likely to stay in force the next two days so the question is how much more do they have to sell.  The breadth was -74%.  New highs dropped way down to 77.  New lows picked up just a bit to 29.  Volume picked up a bit, but was still very light.

The futures closed below the 50 SMA, but have not confirmed a break yet.  They found support there back in early Dec., but this time that seems less likely.

The red count shot up today, but is still a bit below 50.  While the red count is about where it was at the early Dec. low the green count is much lower.  The market appears to be a bit weaker this time.

TLT had a strong day as the pension funds rotated into bonds.  I have no way of knowing how much stock selling they got done today.  Is it finished or is there more to go?  Since I don't have a crystal ball and I did not see Art Cashin saying it was over we will have to wait and see what happens.  The volume was so light it is easy to imagine there will be  more selling.

SPX and COMPX turned their short term trends sideways today.


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