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Tuesday, November 14, 2017

Daily update 11/14

Wow, four downside gaps in a row.

SPX is still hanging on to the 20 SMA as the dip buyers keeps showing up.  Breadth was -61%.  New highs were stable at 104, but new lows increased sharply to 124.  Not particularly good internals. 

The futures closed below the 50 SMA this morning, but have not confirmed a break yet.  They are down once again as I write this.  If they are still down tomorrow that would be five days in a row.  You have to wonder if the dip buyers will keep showing up.

HYG continued down today and made a new closing low for this pullback.  I still have not heard an explanation of this.  I have heard some people noticing it though.  I don't know if it will bottom in this area or not. 

Global markets have been pulling back ever since the Japan incident.  Not scared type selling.  Just some money coming off the table.  While investors have not been very interested in selling in the U.S. I have to wonder how long that can last if global markets keep falling.  How many downside gaps in a row can we have without the dip buyers losing some confidence?  I guess the lure of tax cuts keeps em coming back for more.  SPX got down to the key 2566 level, but found good support there.  This makes that level doubly important now should it give way.  That might happen if the futures are still down in the morning.  Then again maybe the bulls rush in one more time. 


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