SPX tested below 2389 again today, but failed to stay there. Breadth was -55%. New highs slipped a bit more to 72. New lows were stable at 40. SPX bent, but did not break. How much more can it take?
The futures ended the day just below the 20 SMA. No confirmed break down yet.
The red count crossed above the green line, but remains below 50. The bulls are losing their grip. Lets take a look at the weekly version.
The green count is still above the red line, but is below 50. The green count dipped and the red count picked up quite a bit this week.
Every dip gets bought and every bounce gets sold. Overall SPX is slipping slightly lower while COMPX hangs out at the highs. The COMPX is being held up completely by the infamous FANG stocks plus AAPL. The new acronym is FAANG. This is not really a healthy situation. The market does not get this thin very often. This is very much like May 2015. The difference this time is the sentiment. We saw a technical condition in 2015 that looked like a top, but it proved not to be the bull market top. SPX was held in check for over a year though. This time we have a similar weak technical condition combined with the most complacent market I have ever seen. This truly is a recipe for a bull market top so pay attention to your long term investments.
If Monday is down I think the bears will be in control in the short term. There are multiple changes to the trend table tonight.
This is an interesting article on the difference between what Warren Buffet is saying and what he is doing. Astonishing Facts About Berkshire Hathaway’s Cash Stash
More technology for country folks.
Have a great weekend.
Bob
No comments:
Post a Comment