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Monday, March 6, 2017

Daily update 3/6

Morning selling and afternoon buyers.

The price damage was not much, but the breadth was -68%,  That seems pretty high for the amount SPX was down.  New highs dropped down some more to 40.  New lows shot up to 56.  That was probably some interest rate stuff hitting new lows.

The futures are below the 20 SMA, but have not confirmed a break yet.  When they come back in the channel they usually make a trip to the lower channel line.  The 50 SMA is just below that line now.  That could be double support there should the market keep dropping.

The red count eclipsed the green, but remains below 50.

SPX closed a bit under the 3/1 low.  It came within fractions of closing the gap.  That pretty much eliminates the 3/1 gap being a continuation gap.  Those are not supposed to close right away.  It would appear the more likely scenario is that 3/1 was an exhaustion gap.  Maybe we get the long awaited pullback if the bulls don't get re energized.


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