SPX rallied up to the 20 DMA, but turned back down late in the day. Breadth was +72%. New highs were 51. New lows were stable at 28. This does not look bullish to me. I guess we will see what happens.
The futures rallied up and over the 50 SMA, but turned back down. They are down some from the 4 PM close. Falling back below the 20 again would likely bring about increased selling pressure.
The green count nearly made it up to overbought today. With SPX still below the 20 DMA this is probably a bad thing for bulls.
The short term oversold condition has now turned into a nearly overbought condition. SPX is above the 200 DMA, but below all the other SMAs. Getting anywhere near oversold above the 20 DMA usually brings out the buyers. If the futures are still down in the morning the sellers could come out in force. The 50 DMA is about to cross the 100 DMA which will make it just a little bit tougher for the bulls. Afternoons have not been kind to stocks most days lately. That is going to have to change if this market is going to rally very far. It is acting more like a bear then a bull at the moment.
Bob
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