The sellers started out of the gate and sent SPX below the low of the last 10 days. The sellers did not pile on so the dip buyers went to work. Despite SPX closing slightly negative the breadth was +55%. New highs were stable once again at 84. SPX is still stuck.
The futures found support at the lower channel line. That is a pretty tight range.
The green count picked up a bit despite the negative day. It crossed the red line, but remains below 50.
There was no panic "get me out of here" selling on the break of the 50 DMA this morning. Maybe that means the market is about to go up. The only caveat is that there has been no selling into weakness all along. The sellers seem to show up on strength when price is at or above the 20 DMA. Maybe after today's action those sellers will reevaluate and put their hands back in their pockets. I can't really say if that will be the case or not. The selling appears to be profit taking since they don't want to sell into weakness. But exactly who is doing that selling and how much more do they want to sell? I think earnings will determine the ultimate move. Can they beat expectations and give good forward guidance?
Bob
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