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Monday, April 17, 2017

Daily update 4/17 Big drop in U.S. government tax receipts

Bouncy, bouncy.

SPX ended the day just a few points below the 50 SMA.  The breadth was a strong +71%,  New highs came in at 80.  Volume looks pretty light. 

The futures ended the day right at the 20 SMA.  I mentioned the 200 SMA as possible support that was touched last Thursday.  That line provided enough support to get a decent bounce. 

The green count crossed back above the red line today, but remains well below 50.  Quite battle going in the market.  Neither side able to take full control so far.

Today was a nice oversold bounce.  The question is whether there are still sellers out there.  Can SPX clear the 20 and 50 DMAs just above?  It is certainly a possibility.  Lets see if the bulls will show up again tomorrow.

This a bit of a scary looking chart.


The big drop is mostly from corporate taxes.  That probably has a lot to do with the big oil price drop.  Big drops like this have always been associated with recessions.  Will it be different this time?


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