Another day with the high early on. Technically we did not make the low in the afternoon as it occurred just before noon. However, the spirit of the pattern definitely existed. This pattern is definitely becoming established. Some investors are selling opening strength. Breadth was +52%. New highs were stable again at 84. New lows dropped a bit to 16. Since SPX did not get above resistance today it broke the Feb. uptrend line by default. Being as we broke it once before and the world did not end I can't say that today was important. Time will tell.
The futures have been going sideways so long the 100 SMA has caught up to price and was tagged today. If the market wants to go higher this seems like a good place to launch from. We still have the problem of extremely low VIX to deal with. If we break the 100 instead of launching a trip to the 200 SMA could be in the cards. That would be about 50 points or so lower from here.
The counts continue to be braided. A resolution should be coming up fairly soon.
The consolidation continues. Some day I presume it will end. I don't know what else to say.
This is an interesting read on inflation. Inflation – The Good & Bad 01-20-17
Bob
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