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Friday, June 22, 2018

Daily update 6/22 S&P 500 Historic Resilience: Bullish Or Bearish?

The shoe was on the other foot today.  SPX was green for a change while QQQ and IWM ended in the red.

The futures gapped up, but found their high in the first minute the market was open.  That was also true of QQQ and IWM.  Some investors had no qualms about selling into strength.  Breadth was +63%.  New highs were stable at 84.  New lows dropped to 33.  I suspect the beaten down cyclical stocks had some bargain hunters active. 

The futures made several attempts to get above the 50 SMA, but it was clear resistance.  We still don't have a confirmed break of the 50, but the action today did not look bullish to me.

Not much change in the red count.  Despite the up day the green count slipped a bit.  Most likely because of the sell off in tech land.

SPX is trying to hold support above the May highs.  It is not looking very convincing to me.  There is clear overhead supply at the moment.  History suggests the pullback should continue and I see no reason for things to be different yet.  Now that I said that SPX will probably be up 2% on Monday!

Rant on:

The media is getting like the weather.  You know the old saying.  Everybody complains about the weather, but nobody does anything about it.  I see more and more people complaining about the "fake news" and lies in the media these days.  It is tough to run a democracy when the people are uniformed.  I think we have a worse problem.  People are misinformed rather then uninformed.  In the long run our democracy will fall apart if we do not change things.  We must get back to truth in the media.  Unfortunately I am not sure how to do that.  Digital media has fostered a quest for clicks by media companies.  Lies and hate get many more clicks then the truth.  As long as there is no penalty for lies there will be no change.

Rant off:

This is an interesting look at the unprecedented action of June 15-19.  S&P 500 Historic Resilience: Bullish Or Bearish?

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.