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Friday, September 7, 2018

Daily update 9/7

SPX closes slightly below the Jan. high.


SPX tested below the 20 SMA, but held above it at the close.  Breadth was -65%.  New highs dropped down to 79.  New lows increased to 129. 


The dip buyers showed up again, but the bounces got sold.  The futures ended the day below the 50 SMA, but without confirmation of a break.


The red count crossed the green line, but remains below 50.  The bulls better show up pretty soon.

The selling pressure has been moderate, but the buying has been even less enthusiastic so price has drifted lower.  I think the bulls had better show up on Monday or the selling pressure could pick up.  With SPX closing below the Jan. high we have the possibility of a failed  now high.  Unlike last week I did not hear anything more from the U.S.-Canada trade negotiations.  The U.S. did not put extra tariffs on China yet, but the comment period ran out yesterday so they could be imposed anytime now.  I saw a headline that Trump would put on another $267 billion worth of tariffs if China retaliates again.  I can't imagine the market would like that. 

The market has been consolidating since mid morning yesterday.  The bulls are trying to hold support here at the Jan. high.  If the bulls don't show up on Monday selling pressure is likely to increase.

Have a great weekend.

Bob

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