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Thursday, April 26, 2018

Daily update 4/26

Buying spree.  Thank you FB.

SPX rallied through most of the day.  There was a bit of a late day sell off.  Volume was relatively heavy.  Breadth was +64%.  New highs increased a bit to 61.  New lows dropped way down to 73 as bonds rallied today.  SPX closed back above the 20 SMA, but remains below the 50 and 100 lines. 

As  mentioned last night if the futures closed above the lower channel line they might go up to the 20 SMA.  They did indeed test above the 20 intraday and that is when the late day selling took over.  After the 4 PM close they rallied back above the 20.  I see AMZN is up 7% in after hours on earnings.  That could be supplying the bullish mood.  Will they confirm a break or roll back over?

The green count picked up a bit today.  Another strong day could give these lines a positive cross.

It was clearly a big cap tech day after FB's blow out earnings.  NDX was up 2%. SPX was up 1%. Bringing up the rear was R2000 up only .5%.  Did FB save the market or was this just another one day wonder? The bulls had a good day, but they still need upside follow through.  This market reminds me a lot of 2000.  The market was going up and down rather violently at times.  FB earnings clearly sparked buying today.  The market has demonstrated a very short attention span lately.  Yesterday the transports had a good day, today they were down .75%.  While NDX was up 2% today XLF was up only .1%.  If the downtrend is still in effect the market could head back down tomorrow.  A close above today's high could indicate a higher low on the daily chart and a resumption of the rally.  I don't know what the higher odds play is.  The market is a bit dysfunctional at the moment.


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