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Tuesday, June 5, 2018

Daily update 6/5

Slightly higher.

SPX tested above yesterday's high early in the day and sold off.  It dropped slightly below yesterday's low and found buyers very quickly (generally bullish action).  It spent the rest of the day grinding  higher  and closed just slightly below yesterday's high.  Breadth was +57%.  New highs came in at 169.  New lows increased a bit to 49.

The futures dipped back inside the upper channel line, but quickly rallied back above it.  That keeps the current rally alive.

The green count finally crossed the red line, but remains below 50. 

COMPX closed fractionally above its prior high.  Everybody seemed to be pretty excited that both R2000 and COMPX are at new highs.  My guess is trade war fears is driving the action.  Small caps and big cap tech are the least affected by currently proposed tariffs so that is where the money flows.  SPX is lagging behind because it has more stocks negatively affected then the other indexes.  The transports were red today and are probably struggling over tariff worries as well.  The theory being it will slow down global trade.  XLF was also red.  That could be worries over Italy blowing up.  Yesterday's break out held up today despite some cross currents.  Unless some news event changes things I suspect we will creep higher.  There could be some significant resistance in the 2800 area.  Lets see if the bulls are willing to push it up there.  We still need to be vigilant on COMPX just in case it decides to make a double top here.


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