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Friday, May 5, 2017

Daily update 5/5

The employment data sparked a little buying, but will it be enough?

SPX makes a new closing high just below the key 2400 resistance level.  Breadth was a strong +69%.  New highs increased to 182.  Is that it for the consolidation?  I think so.  If we don't break out the top here I think SPX is likely to break out the bottom.

The futures closed above the upper channel line again.  Will they be able to stay out there?

The green count crossed above the red line, but remains below 50.

The intermediate bull pressure lines are dead even while the short and long term lines are still negative.  This is really not optimum for making a new closing high on SPX.

This is a look at the last few months of the stock only advance/decline line.  As you can see there is a slight negative divergence at this new closing high compared to back in March and recently at the end of April.  Whether that is a problem or not I cannot say.

There was a pretty good rally into the close.  As we know those are not necessarily a good indicator of future direction.  In this case the day ended right at major resistance with no time for the bears to react.  The internals are showing considerable negative divergences here.  I can't help but wonder if the odds of a failure aren't higher then breaking out and continuing up.  I guess we will find out next week.

More technology for country folks.

Have a great weekend.


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