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Friday, June 1, 2018

Daily update 6/1

Bulls to the rescue.

The bulls showed up overnight sending the futures higher.  The unemployment report came in better then expected bringing on more buying after the open.  SPX closed at a marginal new rally high.  However, the rally was met with some selling before it go to the 5/14 high.  There appears to be at least some resistance still in this area.  Breadth was +66%.  New highs increased to 112, but that was lower then the 151 we had two days ago.  New lows slipped back to 38.  The 20 SMA crossed above the 100 today.

The futures are back above all the MAs, but are in the area where resistance has been seen before.  The selling late today indicates there is still some out there.

Despite the new closing high the green count did not cross the red line yet.  This does not paint a particularly strong picture here. 

SPX is back at the top of the recent trading range.  What happens now?  Good question.  Sellers showed up today, but that does not tell us if there are enough sellers to stop the rally or not.  We will have to wait until next week and see what happens.  Another trip below the 100 SMA might bring on more selling pressure this time as internals have gotten weaker. 

Have a great weekend.


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