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Tuesday, August 22, 2017

Daily update 8/22

Wow.  An expected bounce actually happened.

SPX closed back above the 50 SMA.  Volume was even lighter then yesterday.  I guess the low volume yesterday was not because of eclipse watching.  The big boys must all be in the Hamptons.  Breadth was +68%.  New highs increased a bit to 82 while new lows dropped way down to 45.

The futures blasted up through the 200 and 20 SMAs.  The 50 and 100 lie just a little bit above.  The 50 was significant resistance on the last bounce attempt.  Can they get through it this time?

The red count dropped below 50, but is still above the green line. 

The short term bull pressure lines got a positive cross today.  That did not happen on the 8/14 bounce attempt.  The intermediate red line looks like it has probably peaked for now.  This chart supports the idea of a short term low being in place.

The bulls kept buying all day as the high came late in the day.  That is certainly a positive.  The 8/14 rally attempt stalled out mid day.  I think we will see better follow through this time.  The volume being even lighter then yesterday's light volume is a bit troubling coming off a low though.  Not a lot of conviction to the move.  As long as the sellers stay on vacation SPX could retest the high.  The news flow could determine that.  We could be in a bit of a quiet period for news to the end of the month.  Maybe the bulls will keep on buying.


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