SPX broke 2389 this morning which ushered in some selling. However, SPX found its low early in the day and rallied back above the key 2389 level. Breadth was -63%. New highs slipped again to 81. New lows increased a bit to 44.
The futures found their low just above the lower channel line. They bounced back above the 20 SMA. They ran into some resistance late in the day and closed right at the 20.
The green count slipped today, but remains above the red line.
The dip buyers have been coming in on weakness. The last few days the futures are making lower highs and lower lows. What the bulls need is rally chasers. Without them the market will eventually break down. It is easy to understand why the chasers are missing. Valuations are high and there are questions about economic growth. Need I even mention what is going on in D.C. I think there are plenty of reasons for buyers to sit on their hands at the moment.
Bob
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