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Friday, March 9, 2018

Daily update 3/9

Bulls liked the employment report this time.

SPX gapped up and continued higher all day closing well above the downtrend line.  It is now testing the 2/27 high.  Breadth was +69%.  Volume increased over yesterday as well.  New highs expanded a bit to 129.  New lows were stable at 44.  Today should open the door to a test of the Jan. high.

The futures were actually down a bit before the employment report came out.  There was an immediate positive response that lasted all day.  The futures ended the day well above the upper channel line.  We will have to wait and see if they can stay out there.

The green count shot up to overbought levels.  Will that be a problem for bulls or will they keep on buying?

Next week is option expiration which usually has a bullish bias.  With the break of the downtrend line and QQQ making a new high today there is a reasonable chance the market works higher next week.  Closing back below the downtrend line would change the picture considerably. 

I think this is appropriate after a day like today.

Have a great weekend.


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