Mid morning SPX dipped below yesterday's low, but bounced right back. It held above that low all the way to the close. That is generally bullish action. Breadth was slightly positive. New highs dipped a bit to 107. New lows remained high at 73. SPX looks like a consolidation above the 100 SMA. So far the bulls are doing what they need to do. The 20 SMA crossed above the 50 SMA today. Some people consider that a buy signal.
The futures dipped below the low of the last 6 bars, but failed to collapse. They ended the day still below the 20 SMA, but showing clear signs of support.
The green count dipped below 50. In an uptrend that will often bring out the buyers.
SPX has worked off the overbought condition shown by the McClellan oscillator. The 100 DMA has clearly worked as support. The market looks poised to continue higher next week. If the bears come out to play on Monday a close below the 100 DMA could bring on some more selling pressure and possibly end the rally. Lets see if the bulls come out to play on Monday.
Have a great weekend.
Bob
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