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Tuesday, August 1, 2017

Daily update 8/1 A Market Paradox: Unprecedented Cluster Of New All Time Highs On Negative Volume

More waiting for AAPL today, but after hours the stock is up big on earnings. 

Today was similar to yesterday.  The sellers showed up on the gap up.  Just like yesterday they just hit the bids which kept a lid on price.  Breadth was +57%.  New highs increased a bit to 165 while new lows also increased to 28.

The futures ended the day above the 20 SMA.  Ready for some more upside maybe on AAPL earnings.

The green count turned up, but remains below 50.  Plenty of room before getting overbought should the bulls decide to push prices higher.

Unless some bad news comes out overnight it seems likely AAPL will spark some tech buying tomorrow.  It will certainly help the Dow considerably.  They were on 22k watch today on CNBC, but it never quite got there.  AAPL should push it over the edge.  I heard them say BA was responsible for 400 of the last 1000 points.  That may be getting a bit narrow in that index.  Let see if the bulls are able to overcome the gap up sellers tomorrow.

I mentioned recently the oddity of the market rising where a lot of days had the declining volume higher then the advancing volume.  Here is a historical look at just how odd it is.  A Market Paradox: Unprecedented Cluster Of New All Time Highs On Negative Volume

Any day that has declining volume higher then advancing volume has to be called a distribution day.  When that same day hits new highs in SPX it is odd. It is very rare to get 3 such days in a 3 month period (happening only twice before the current streak).  We now have had 6.  Unprecedented.  With something in the markets that is unprecedented it is rather tough to know if it is significant.   It certainly is odd.  Only time will tell if it is significant.


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