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Friday, December 15, 2017

Daily update 12/15

Tax cut fever grips the market.

I guess there were a few investors out there that decided tax cuts were actually going to happen.  Breadth was +65%.  New highs were only 119.  New lows remain elevated at 30.  We had new closing highs on SPX and COMPX, but not R2000.

The futures are back outside the channel again.  Will they keep on running or come back in?

The green count was up a bit, but remains below 50.  Its been there quite a while despite the market moving up.  That is a bit odd.

A couple of senators that were holding back support of the tax bill approved it today driving the buying.  The full text of the bill was supposed to be released sometime this evening.  It will be interesting to see what kind of comments it receives when people get to read the actual bill.  They say they have the votes to pass it.  Whether it is mostly priced in or not remains to be seen.  Tax cut excitement has overruled the usual mid Dec. pullback.  I have no idea how long that excitement will last or how high it might drive the market.  Today's high volume could be signaling a buying climax.  However, it was quarterly option expiration which always has high volume.  I still expect pent up selling in early Jan., but what happens between now and year end is anybodies guess.  Yearly R3 pivot point resistance is 2744.  That might slow SPX down should we get there.

Have a great weekend.


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