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Friday, October 20, 2017

Daily update 10/20

The passage of the budget bill in the Senate last night provided some buying enthusiasm. 

I meant to mention the other day the next target up was 2575.  That is the R2 yearly floor trader pivot point calculated on the values from 2016.  R3 in case we keep going up is 2744.  Sometimes they provide resistance.  Breadth was +57%.  New highs were 247.  New lows picked up a bit more to 39.  That is really elevated for a strong day at new highs that gapped up to begin with.

The futures broke out above the upper channel line again.  However, the market is pretty extended so I don't know if they will stay out there long.  Coming right back in on Monday would suggest a trip back to the lower line is likely.

The green count picked up a bit today and is above 50.  One interpretation of this pattern is a triple negative divergence.  The other is we are not overbought on this indicator so there is more room for the market to run.  Time will tell which is correct.

SPX hit a potential resistance point and stopped.  What if any affect that will have remains to be seen.  This market has done a lot of consolidating and going higher as opposed to pulling back.  It could always do that again.  On the other hand, it has been a long time since we had any pullback and nearly everybody seems to expect the market to continue higher.  What will happen?

Have a great weekend.


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The information in this blog is provided for educational purposes only and is not to be construed as investment advice.