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Thursday, February 23, 2017

Daily update 2/23

Sellers came out of the woodwork on the gap up.

The futures were showing strong upside momentum going into the open and the breadth started out at +69%.  Under those conditions for quite some time the bulls have showed up to push the market higher intraday.  Instead we had a sizable intraday sell off.  Breadth ended the day +51%.  There was considerable selling into strength today.  New highs were still strong though at 207.

The futures hit the 20 SMA on the early morning sell off and bounced.  However, they ended the day back inside the channel.  That could mean the run is over for now unless the bulls show up in the morning and send the market higher.

The green count slipped again today.  This is the lowest it has been since 2/9. 

The market is losing some momentum.  The weakness we saw in IWM and IYT yesterday continued today and spread to technology.  The SOX was down over 1.6%.  The market is certainly extended enough to justify a rest or pullback.


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