If you would like an email sent to you when I update the blog please send an email with "subscribe" in the subject line to traderbob58@gmail.com. To be removed use "unsubscribe".

Search This Blog or Web

Tuesday, May 1, 2018

Daily update 5/1

Late day rebound.

The day started with a small gap down that saw a little more selling.  Late in the day the bulls mounted a charge with tech stocks leading the way.  Breadth was slightly positive.  New highs dropped to 34 while new lows picked up to 98.  SPX remains below the 20 SMA.

The futures rebounded late in the day, but are still below the 20 SMA.

The red count picked up a bit today despite the positive close.  It remains below 50.

Today's buying in tech was likely due to AAPL earnings after the close.  That does not seem to be helping the futures though as they are down a few points from the 4 PM close.  The after hours data shows AAPL to be up over 3% from the 4 PM close.  I don't know if that is a enough to cause a buying frenzy tomorrow.  The bulls and bears keep taking turns so the market ends up with intraday volatility, but no direction on the daily chart.  The bulls need to prove they can hang on to a rally.  Despite great earnings the market feels heavy. 

The FED is on tap tomorrow with no action expected.  I am sure investors will be parsing the statement closely.  June and Sept. hikes seem to be priced in. People are trying to figure out if Dec. is also on the table or not.  I would not be surprised to see the FED rather mum in that respect. 

Market internals give a slight edge to the bears.  At this point some follow through buying could change that picture though.  Do the bulls have the will?


No comments:


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