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Thursday, May 17, 2018

Daily update 5/17


The market started out just fine.  SPX rallied above yesterday's high.  Then it stopped about 11 AM and started heading lower.  In the after noon some news hit about possible trade issues with China that caused a spike lower.  However, the dip buyers rushed in to buy that dip.  That left us with another doji bar and an indecisive chart.  Breadth was slightly positive.  New highs expanded to 146.  New lows were stable at 57. 

The futures ended the day just above the 20 SMA.  Yesterday's launch was aborted this morning.  That calls into question whether the current pullback might have more to go after all.  The futures have been above my resistance line three times and failed to stay there. 

The green count remains above 50, but it turned down a little. 

I get the feeling that tomorrow may be important as to whether the pullback has further to go or not.  While the breadth is pretty good on this bounce the NYSE ticks do not look particularly strong.  I showed the divergence in the number of SPX stocks above their 200 MAs last night.  I have some questions about the sturdiness of the current bounce.  I think the bulls need to show up tomorrow to keep it going.


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