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Tuesday, February 13, 2018

Daily update 2/13

A little more bounce.

The market opened down a little bit this morning, but then held firm for several hours.  The bulls took over in the afternoon and pushed prices slightly higher.  Breadth was +55%, but was negative the first half of the day.  New highs were 21 and new lows dropped a bit more to 50.  There were enough buyers to absorb the selling pressure this morning.  That should be a positive sign.

The futures consolidated a few bars under the 20 SMA.  The afternoon rally was enough to get a close above it.  No confirmation of a break yet though.  The bounce is gathering a little bit of strength.

The red count imploded meaning many stocks are becoming short term neutral on their daily charts.

The market has worked off the short term oversold condition a bit now.  With SPX up three days in a row the bulls might get a little more confident.  Tomorrow is an important day.  Any oversold market can bounce for three days.  The fourth day is usually the tell.  If we do not roll over tomorrow the bounce could start to pick up some believers.  A close below today's low (2637) would likely bring out the sellers again.


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