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Monday, September 17, 2018

Daily update 9/17

Trade war talk ratchets up.

The rest of the world was considerably more negative then the U.S. at the open.  SPX resisted the downward pull somewhat, but could never overcome it.  Breadth was -58%.  QQQ and IWM were down over 1% showing considerable relative weakness.  New highs slipped to 75.  New lows picked up a bit again to 89. 

The futures ended the trading day slightly below the 50 SMA, but slightly above the 20.  They could never overcome the SPY option resistance at 290-1.

The green count turned down a bit.  It still has not crossed 50 on this rally attempt.

Neither the 10 DMA breadth lines or the McClellan oscillator got positive on this rally attempt. 

SPX found support on the pullback to the Jan. high.  However, the bounce off that support has been very weak.  None of the short term internals have confirmed the rally.  With today's close below Friday's low the market may be rolling over.  With the internals already weak it will be easier for the bears to get control if there is follow through selling. 

This afternoon Trump said there would be news on China after the close.  He seemed to imply it would be an increase in tariffs.  The market drifted lower after those headlines.  At this point I can't seem to find an announcement.  If there is such an announcement some time before the open it could dominate tomorrow's trade. 


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