The dip buyers kept SPX near the top of the old trading range. Not clearly above it and not clearly back into it. Breadth was +58% which was quite strong for a down day in SPX. New highs picked up to 74, but remain quite low. Are we going to bounce off that upper horizontal trend line?
The futures hit the 100 SMA again and again found support. For the moment they seem to have run into resistance at the 20 SMA. Will the futures break through that resistance or be turned back?
The green count turned up again today, but remains below 50.
There is a FED meeting tomorrow. Nobody expects the FED to take any action. However, sometimes their statement can cause a little volatility. Despite the island gap reversal and the Dow's failure to hold 20000 the market may not be done. Another attempt to go higher could be in the works as the market looked like there was some accumulation today. I think there is a lack of selling pressure at this time because we are so close to the one year anniversary of the important Feb. low. After the middle of Feb. that may change.
Bob
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