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Wednesday, September 20, 2017

Daily update 9/20

The FED announcement was pretty much a non event for stocks.  However, volatility showed up in the dollar and gold.  They even moved the way one would expect them to move.  How odd is that!

SPX had a 12 point intraday range which is big by recent standards.  However, that was pretty small for a day the FED actually did something.  At the end of the day SPX was slightly positive.  Breadth was +52%.  New highs were up a bit to 188.  New lows were stable at 17.  This looked like a typical slow creep up day with internals to match.  This pattern is prone to a sharp reversal.

The futures dipped down to the 20 SMA after the announcement, but found support.  They are still below the upper channel line so we are still in consolidation mode.

The green count slipped a little bit more. 

The slow creep up pattern is becoming clear in SPX now that internals are matching.  The market is looking a little tired.  We could see a sharp down day any time now.  That is usually how the slow creep pattern ends. However, the pattern can last for several days.  A fall correction still looks possible.  I guess we will see if it happens.


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