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Wednesday, March 22, 2017

Daily update 2/22

A few dip buyers showed up today.

SPX held on to the upper channel line.  Breadth was slightly positive.  New highs dropped way down to 35.  New lows climbed again to 80.  No follow through selling to speak of this morning which emboldened some dip buyers to step in.

The futures are showing a bit of a bounce.  It is not uncommon after a high -DI reading to get an oversold bounce.  Whether that bounce gets some legs probably depends on a lot of different factors. 

The red count dropped back below 50.  It looks like the bears are taking a wait and see atttitude for now.

A lot of sectors have been hit pretty hard and I have to think that might not all be related to the healthcare vote.  Anything that looks to be delaying tax cuts will probably not be received very well.  The house is supposed to vote on healthcare tomorrow.  I have no idea how that will work out.  A no vote or a postponement will probably be a negative.  If the bill is passed we could see more bounce.  So I guess we will wait and see what happens tomorrow and go from there.


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