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Wednesday, June 21, 2017

Daily update 6/21

Bit of an odd day.

SPX was probably dragged lower by the continual drop in oil prices.  COMPX on the other hand found some buying.  Breadth was -61%.  New highs dropped again to 94.  New lows increased to 119.  That is the most new lows since last Nov. 

The futures found support at the 50 SMA.  They might still be headed to the lower channel line.  If the 50 SMA can hold long enough maybe they rally again.

The red line crossed above the green today, but is still below 50. 

All my internal indicators have negative crosses now.  This is where the market has to decide whether to rally again or pullback some.  The biotech stocks had a big three day explosion and IBB was up over 4% today.  I believe that sector is what kept the buying interest in NASDAQ stocks today.  Since they have just had that big explosion the odds of further upside in the short run are pretty low.  The bulls will probably need something else tomorrow to keep them interested.  QQQ is just below last week's high.  What happens here might have a significant impact on what the rest of the market does.  An upside break out tomorrow could set up a test of the high in QQQ and would probably stave off a pullback in SPX.  If we see more downside then it will be important to see if QQQ holds the recent lows at its 50 DMA.

More changes to the trend table.


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