Volume dropped considerably today. That means there was a lack of buying enthusiasm rather then a lot of selling pressure. Breadth was slightly positive. New highs remained near yesterday's number at 165. New lows dropped way down to 13.
The futures tried to break out of the channel, but fell back in. Since we did not get a clear break out and failure they won't necessarily drop back to the lower channel.
The green count slipped considerably today. The bulls had a chance to seize the day, but decided not to.
The short term bull pressure lines are positive, but not by much. The intermediate lines are still negative. That last pullback did some technical damage and it remains to be seen if the bulls will rekindle their buying enthusiasm or not. The long term lines are still positive, but the green line is not particularly strong with SPX sitting this close to the high.
There was clearly a lack of desire by the bulls today. What caused that is hard to say. It could be option related which should not last. However, it could be oil related (or some other reason like valuation) which could persist. I think we need to let the market sort itself it put and see what develops.
R2000 turned its short term trend sideways today.
Some interesting comments on the corporate bond market.
The Corporate Bond Market: The Start of the Matter
Bob
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