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Tuesday, March 6, 2018

Daily update 3/6

Pause day.

The market gapped up and sold off.  The dip buyers came in after SPX got slightly negative.  The market worked somewhat higher in the afternoon.  Breadth was +66%.  New highs increased to 87.  New lows were stable at 34.  SPX consolidated just below the 50 DMA.  It looks like a symmetrical triangle forming.  Breaking one of the trend lines will probably indicate whether we test the Jan. high or the Feb. low next.

The futures tested below the 200 SMA this morning, but found support.  They ended the day at the 20 SMA.  After hours news hit that Gary Cohn is leaving the white house.  That news sent the futures tumbling.  While they are still down considerably they have bounced a good ways off the low.  There is no telling where they will be in the morning.  However, this does not seem like earth shattering news to me.  I would not be surprised to see them higher then they are now.

There was little change in the red/green counts.  The bulls are not picking up any strength yet.

The dip buyers were busy today.  At the end of the day it looked like the market was wanting to head higher.  I don't know if the Cohn news will derail that or not.  The futures seem to be over reacting to me.  We will have to wait and see what happens tomorrow.  I think the triangle still has a little further to go in the formation.  There will likely be more ups and downs until the market figures out what it wants to do.


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The information in this blog is provided for educational purposes only and is not to be construed as investment advice.