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Friday, August 3, 2018

Daily update 8/3

Some upside follow through.

A late day headline about high level talks with China made the day look a little better then it probably was.  Breadth was +56% and volume was very light.  Its was more about a lack of sellers then enthusiastic buyers.  New highs increased to 109.  New lows dropped to 30.

The futures had a fairly narrow overnight range and stayed within that range most of the day.  The late day rally pushed them higher.  They closed just below the upper channel line. 

The green count crossed slightly above the red line.  No clear sign of strength on this bounce yet.

While most indexes were higher R2000 was down .52%.  Not exactly a confidence booster that the market is getting into gear.  The last few weeks of this rally have been built on an absence of sellers.  That is making the internals look weak despite the rise in prices.  SPX has only had three closes higher then here.  The air looks like it is getting very thin.  However, until something brings out the sellers in force we could just keep floating higher.  If SPX manages to get all the way back to a new high then I would expect some profit takers will show up.  Whether they show up before that I cannot say. 

Have a great weekend.


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