SPX made a new low in the afternoon today. This is the second day we have seen that. It is still too soon to say it is a pattern, but given that it was the prevalent pattern before the election it is possible. Upon closer inspection of SPX I noticed it was developing a megaphone pattern on the daily chart. Breadth was -54% so selling was rather concentrated. New highs dropped under 100 again to 93. I don't know if the uptrend line from the Feb. low is still important or not since it was broken once. Price appears to be getting pinched in between that line and the top of the recent range. Something has to give.
The red count crossed above the green again. Neither side wants the ball at the moment.
The trading range continues. However, the post election trade is experiencing some profit taking. If that lasts long enough it could put some downside pressure on SPX. Dow 20,000 remains illusive. It is possible we don't get there in the near future.
Bob
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