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Tuesday, January 23, 2018

Daily update 1/23

Up again.

Not much to say.  Breadth was +57%.  New highs were 291.  New lows dropped to 24.

The futures remain outside the channel in accelerated up move mode.  Every time they get back in the channel buyers show up again.

The bears remain in hibernation.  SPX is unusually steep at new highs after such a long rally.  Normally we need a good sell off to get this steep of a rally.  I have seen lots of people try to explain why this move is justified in the fundamentals. This rate of climb looks more like pure momentum to me.  Momentum moves always seem to go further then what seems rational, but often end rather suddenly.  We are in record territory with the longest period without a 5% or more correction.  A 5% pullback should not surprise anybody.  It is bound to happen sooner then later.  I guess we just play along until it decides to stop.


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