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Tuesday, May 8, 2018

Daily update 5/8

Pause day.

SPX dipped below yesterday's low a few times today.  Each time the dip buyers came out to load up.  The volume increased, but SPX ended the day flat.  That looks like bullish action in the short term.  Breadth was slightly positive.  New highs dropped down to 77 while new lows picked up a bit to 66.

The futures dipped back below the 50 SMA, but failed to stay there.  That is a positive.

The red count came down a bit.  A strong up day should result in a positive cross.

The bulls defended yesterday's low.  That usually indicates good buying interest.  The market appears to want to go higher to me.  Maybe SPX is ready to test the downtrend line from the Jan. and March tops.  The 100 DMA is in that vicinity.  The daily chart has a double top lower high back in Feb. and March.  Now we might be forming a double bottom higher low.  This is an unusual chart pattern for SPX.  The trends in the trend table are improving.  Will the bulls step up and take control of the market?


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