The market gapped up a little bit and struggled some higher mid day. However, at the end of the day SPX ended where it started. Breadth was +58%. New highs were 44 while new lows dropped to 62. The follow through from yesterday's bounce off of key support was unimpressive.
The futures tested slightly above the lower channel line, but found a few sellers. That keeps the move down intact for the moment.
Not much change in the counts.
IYT and XLF were both down despite the bounce in the major indexes. That does not bode well for yesterday being a bottom. The bulls are going to have to do better then this. The last hour was dominated by sellers. Another not so good sign for bulls. Unless the bulls really come out firing tomorrow and hold on all day I think the odds are pretty good SPX will test yesterday's low in the near future. A successful test of that low might lead to a better bounce.
I mentioned a few times I think we have a new sheriff in town at the FED. This is an interesting read on what Powell said in last press conference. The Fed Just Made Its Most Hawkish Turn in 30+ Years (Did Anyone Notice?)
Bob
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