SPX made a new intraday high when it tested above 2400 right after the open. However, the sellers started hitting the bids a little. Another late day rally gave SPX a new closing high by a whopping .09 points. Whoopieeeeeeeeeeee. The breadth was -54%. New highs slipped a bit to 146. New lows were stable with Friday's number at 31, but well down from Thursday's spike up to 97. The volume was light, but actually higher then Friday's low volume lift to new highs.
The futures came right back into the channel. Usually that means a trip to the lower channel line.
The green count increased a bit again, but remains below 50.
There was only slight selling pressure today. There was clearly a lack of buying interest at the highs this morning. The rest of the day was about as boring as a trading day can get. The odd thing was the Transports were down 1%. Commodity prices have been falling and the Transports have been lagging. That does not appear to indicate a strengthening economy. The data coming out of China has not been very good of late. So far none of that has bothered SPX at all. They have been parading a lot of bulls on TV lately. I even saw an article title saying don't let the lack of worry in the market worry you. That just seems like an article that would only be written at an important top. I guess we will see. Last year saw the slowest growth in this recovery and so far this year I can see no acceleration. Meanwhile nobody is worried. Isn't that when we are supposed to be worried. I guess we will see.
Interesting article sent in by a friend (thanks Manny). Markets Overlooking A Clear & Present Danger?
Bob
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