The bulls managed to keep SPX above 2400 at the close. The market started with a gap up that people started selling into right away. No rally chasers to keep the bounce going. Breadth was -52%. New highs picked up a bit to 170. New lows also picked up to 55. That is way elevated on a day SPX hit a new high intraday.
Something must have happened between 5 and 6 PM EST when the futures were closed. After they opened back up at 6 PM they headed lower and are down 15 points from the 4 PM close. I have no idea what happened or whether they will still be down in the morning.
The red count picked up slightly today, but remains below 50. A down day tomorrow should take care of that though.
Today's failure to find buyers was not a good thing for bulls. It is pretty clear there simply are no takers above 2400. It is easy to imagine today being a short term top even without the futures being down after hours. If they are still down in the morning it will be interesting to see if they sell it anyway or if the dip buyers come in. To date the dip buyers have been rushing in on any weakness. If that does not happen tomorrow then we have a change of character at least in the short term.
This is a good read on how Wall Street works sent in by a reader (tnx trip). Fake “Trump Trade” Dies on the Vine
Bob
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