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Monday, February 6, 2017

Daily update 2/6

No upside follow through, but then again that is not really surprising.

There simply was no buying interest up here.  Breadth was -60%.  New highs slipped a bit to 132. Since the brexit low in June it appears SPX has been forming a pretty clean looking trend channel.  There is more room up to the upper line should the bulls decide to push things up further.  I am not sure if they can overcome resistance here, but you never know.

So far the upper channel line has kept the market in check.  It is a bit of an odd looking pattern.  This is really unnaturally low volatility. 

Mot much has changed with this chart.  The red/green counts remain neutral while the intermediate indicator remains above 50. 

It looks like the consolidation is continuing.  I don't see any sign the market is gathering a head of steam to move up yet.  We still have another week to go before we get past the one year anniversary of the Feb. low.  I think that might increase the selling pressure a bit as investors could be more willing to take some profits.  However, there could be enough dip buyers to absorb the selling.  Its really hard to say.  Until the market does something extra positive or negative we remain in this sleepy range.


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