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Tuesday, April 18, 2017

Daily update 4/18 Irrational Exuberance Part Deux?

Dip buyers still showing up.


Despite the market opening down it failed to break.  Breadth was -67% mid day, but ended up just barely negative.  New highs expanded to 94.  That all seems kind of positive for bulls.


The low was just a fraction above the key 200 SMA.  The buyers showed up on cue and push prices higher the rest of the day.  That appears to be a positive for the bulls.


The green count ticked up a bit even though SPX was negative on the day.  The bears are not acting very serious.

It appears there are enough dip buyers to absorb what little selling pressure there is at these levels.  It looks like the market wants to bounce to me.  With the VIX already down in the 14 range it is unclear how far a bounce might go from here.  We will have to see how fast the VIX drops if it gets going on the upside.

This is a pretty interesting read.  Irrational Exuberance Part Deux?


Do the FED pension fund managers know something the rest of the world does not?

Bob

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