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Thursday, August 31, 2017

Daily update 8/31

Now that is follow through.

The biggest upside volume bar since back in July.  Breadth was +69%.  New highs increased to 127.  New lows dropped to 19.  Last night I wrote "Maybe the bounce will get some legs.  Closing higher tomorrow would be a good sign."  I think we got some legs.  A test of the highs should be upcoming.

The futures broke out above the upper channel line.  It will be interesting to see how long they can stay out there.  Coming back inside the channel will indicate a pause or consolidation.

The green count shot up and over 50, but remains well below overbought.

Everything seems to indicate SPX should head higher.  Closing back below 2454 would change the outlook.  On the upside we have the high close at 2480 and the intraday high at 2490.  Ever since we hit that 2490 I have had the feeling SPX would hit 2500 in the near future.  This looks like a good setup to make that happen.  Tomorrow is the employment report.  Strong readings have tended to bring out buyers.  I don't see any reason for this report to have a problem.  Next month could be affected by Harvey.


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