SPX has a bullish engulfing bar coming off the 20 SMA. Unless some negative news hits that should be good for some more upside. Breadth was slightly positive. New highs were stable at 94. New lows were up a bit to 115. Volume was up a bit.
The futures closed back above both the 20 and 50 SMAs. They appear to have broken out above the consolidation that formed starting on 9/6.
The red count crossed above the green line slightly. This could be the result of more rotation going on. If the bulls follow through on the upside the green count should recross the red line.
It appears the Jan. high held as support. Today's thrust seems likely to see some follow through unless some negative headlines kill the bounce. Today started with a gap down that the bulls started buying with some enthusiasm right away. The breadth was not as strong as price would indicate it should have been. That means the move was spear headed by big cap stocks. We still have SPY option resistance at the 290 and 291 strikes. That held the first time tested. If we get there again it would be a second test. The odds should be slightly better price gets through it this time. There could be some acceleration somewhere above 291.5. The next level of resistance is the 295 strike. SPX closing back below the Jan. high (2873) would be problematical for bulls at this point. Let see if the bulls really meant what they seem to be saying today.
Bob
No comments:
Post a Comment