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Wednesday, August 30, 2017

Daily update 9/30 It’s Not Just Amazon’s Fault

The bullish news event causing today's break out was raising the Q2 GDP estimate to 3%.

SPX closed above the 8/22 high, but only by 3 points.  Breadth was +56%.  New highs increased slightly to 72.  New lows came in at 44.  Not the strongest of thrust bars today, but SPX closed above both the 50 and 20 SMAs.

The futures rallied overnight, but pulled back into the open.  Not to worry as buyers stepped in at the open and rallied the market until late afternoon.  The futures stopped at the 100 SMA which can be major support and resistance.  There is no way to know if that MA will be relevant this time.

The volume was light, the breadth was mediocre, new highs did not expand much, and the green count actually dropped a tad.  Like I said it was not the strongest of thrust bars.  Will it attract more buyers or bring out the sellers?

Last night I wrote "The key range on SPX is 2433-2454.  A close outside that range should see some follow through."  However, today was so weak for a break out I have no idea if there will be any follow through or not.  If SPX closes down by three or more points the break out will be a failure.  That isn't exactly a lot of room.  Maybe the bounce will get some legs.  Closing higher tomorrow would be a good sign.

This is an interesting read on the state of retail.  It’s Not Just Amazon’s Fault


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