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Friday, September 1, 2017

Daily update 9/1 The Great Equity-For-Debt Swap

Digestion day.

SPX decided to take a bit of a break after a big three day run.  Breadth was +65%.  New highs increased again to 167.  New lows remained above 10 at 16.  The close was just 5 points short of a new high.  The employment report was a bit weaker then expected and we have a three day weekend for buyers to contemplate.  There was a bit of a pullback into the close, but that could have been hedging the three day weekend.

The futures remain outside the upper channel line.  We are still in an accelerated up move until they close back inside it.

The green count is just short of overbought.  That might slow the rally down a bit.  This close to the highs that would be likely to happen soon anyway.

The McClellan oscillator is the highest it has been since early Jan.  High readings like this have tended to slow the market down this year. 

The market is overbought in the short term enough it might struggle to continue higher.  There is always the possibility this strength is a sign of initiation of a new leg up.  That is a very rare thing to do this time of year.  I think it more likely this is a move to retest the summer highs.  QQQ made a slight new intraday high, but failed to stay there.  It fell a little short of a new high close like SPX.  A fall correction still seems likely to me.  Lets see what the bulls decide to do here.

Interesting article.  The Great Equity-For-Debt Swap

Look out!

Have a great weekend.


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