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Tuesday, October 31, 2017

Daily update 10/31 How Much Illusion in GDP? What You See Is Not What You Get

A narrow range inside day.

The bulls showed up a little bit.  Breadth was +59%.  New highs were up a good bit to 172.  New lows were also up to 52.  The volume was elevated once again.  With the narrow range that suggests a two sided market. 

The futures pulled back to the 20 SMA, but found support and bounced again.

The red count slipped considerably, but remains above the green line.  The power is up for grabs.

It looks like the yearly R2 pivot point is providing resistance on SPX.  So far there has been enough buyers to absorb the profit taking.  The question as always is which side runs out of ammo first.  A look at the daily IWM chart shows the volatility picking up a bit in recent days.  Could a good move be brewing there one way or the other?  It certainly looks like something is going on.  Tomorrow is FED day and no change in policy is expected.  Some times in the past doing nothing as expected still caused some volatility, but that has not really been the case lately.  Tomorrow may be more of the same nothingness as the market awaits earnings from AAPL.

Good article on the mess that is GDP.  How Much Illusion in GDP? What You See Is Not What You Get


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