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Thursday, February 2, 2017

Daily update 2/2

Another sleepy day.


Dip buyers showed up again, but they were not very ambitious.  Breadth was +52%.  New highs slipped down to 107.  The 20 SMA continues to provide support, but that is about all we can say.  Will it hold long enough to launch another rally?


Overnight the futures touched the 100 SMA and bounced.  However, they never quite made it up to the 20 SMA.  It looks like there might be a consolidation pattern forming below the 20 SMA.  That is not particularly good for bulls. The 20 is starting to turn down which could end up putting downside pressure on the market.


Not much change in the red/green counts today.  The intermediate indicator is slipping noticeably.  Remember the key for that indicator is the 50 level.  There is still a ways to go.  However, it is the lowest it has been since early Dec.

Price is holding up, but the market seems to be getting slightly weaker internally.  I am still leaning towards a break down eventually.

Bob


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