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Wednesday, September 6, 2017

Daily update 9/6 Consumption Exhaustion

The bulls showed up right on cue.

It was a modest up day as the sellers showed up now and then.  The bulls absorbed the selling though.  Breadth was +59%.  New highs were stable at 109.  New lows came in at 23.  Volume was good again.  With summer vacations over participation is picking up again.

The futures tested below the 20 SMA overnight and during market hours, but found support.  They are testing below that MA again in after hours trading.  They took a plunge in the first 2 minutes after trading started again.  No idea what that is about. 

The green count increased a bit and is above 50.  Plenty of room to go before we get overbought.

The buyers absorbed the left over selling from yesterday.  The bulls remain in control.  There was a decent breadth thrust off the low. That usually means higher prices for SPX are coming.  A close back below the 50 DMA would change the equation.  That would likely take a news event, but there are probably plenty of things going on that could do that.

This is an interesting read about the state of the consumer.  Consumption Exhaustion


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