SPX closed back above the Jan. high. Not exactly the roaring day the bulls were hoping for. Breadth was +59%. New highs were 96. New lows dropped to 84. Volume dropped noticeably.
The futures tested above the 50 SMA, but failed to hold there. The bulls need to do better then this to keep the break out alive.
The green count got a slight positive cross. The bulls came in to buy on the negative cross, but they lacked enthusiasm today.
SPX found its high about 20 minutes after the open. It traded sideways the rest of the day. This is not the most passionate bounce off the 20 DMA I have ever seen. The bulls need to work a little harder then this or the break out will fail. The futures ended the day about 7 points below the open. Even though SPX closed positive the bears probably won the day. The consolidation that started mid morning on 9/6 is still ongoing. The market is coiling up for a big move. It looks heavy to me. Strength is clearly getting sold into. Trade resolution with Canada no longer appears imminent. Talk of increasing tariffs on China is still in the air. I can understand why buyers might be a little hesitant. The market has been doing its best to resist the pull of the mid term election pullback. It might succumb yet.
Bob
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