SPX closed above the 20 SMA. Breadth was +57%. New highs were stable at 86. An expansion of new highs would have been better. Today was a bit tepid.
The futures have popped out above the upper channel line again. The last two times they did this they ended up falling back. I don't know if it is different this time or not.
The green count crossed 50. This is usually where the bounce fails if it is going to.
The short term lines are showing some buying power. The intermediate lines are coming together but are still slightly negative. The long term lines have been braided recently. Still not clear if the market is just consolidating or forming a top.
Both R2000 and SPX turned their short term trends to neutral. Despite the market being up the VIX was up a bit. I wonder if some investors were adding hedges. The oversold condition has been eliminated. SPX is right at the edge of the 3/1 gap up so there could be some resistance just above here. If that gap was an exhaustion gap the bounce should fail right around here. While the market has struggled since that day it has not sold off enough to conclude there was exhaustion. I think this is an important bounce. Will the bulls decide to push to new highs?
I heard CNBC say the CBO issued a warning about a possible future financial crisis because of sky rocketing government debt. All I can say it is about time somebody said something. Here is the report. CBO budget outlook
Bob
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