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Friday, July 21, 2017

Daily update 7/21

Expiration week ends with a whimper.

The market opened down a little and sold off a little more before the dip buyers came to the rescue. However, the buyers never pushed SPX into the green.  Breadth was -51%.  New highs dropped considerably to 171.  New lows picked up again to 15.  They don't seem to want to stay below 10 where they should be. 

The futures closed back inside the channel early this morning signaling the beginning of a consolidation phase.

The green count slipped a bit more today, but remains well above 50.

The tech bulls are working hard to keep QQQ above the break level.  QQQ opened below 143.90 and sold off enough to get into the 7/19 gap up.  There the dip buyers came in to save the day.  QQQ tested a bit below 143.90 in the afternoon, but found plenty of support.  If it keeps testing below the break out it will eventually fail.  The bulls need to put together another push up to get free and clear of the prior high.  With the VIX this low and it being July I don't know if that will happen.  A failed break out could open the door for another bout of selling.

I am not sure exactly how it works, but this is amazingly accurate. Read the full description before looking at the picture.

The picture below has 2 identical dolphins in it. It was used in a case study on stress levels at St. Mary's Hospital.  Look at both dolphins jumping out of the water.  The dolphins are identical.  A closely monitored, scientific study revealed that, in spite of the fact that the dolphins are identical, a person under stress would find differences in the two dolphins. The more differences a person finds between the dolphins, the more stress that person is experiencing.  Look at the photograph and if you find more than one or two differences you may want to take a vacation. 

Have a great weekend.


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The information in this blog is provided for educational purposes only and is not to be construed as investment advice.