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Monday, October 22, 2018

Daily update 10/22

The bears attempted to start a retest of the low, but the dip buyers thwarted that effort a little bit today.

The overseas markets were all positive overnight.  That led the futures to gap up at the open.  However, sellers showed up and sent the market lower.  When SPX got down to the 10/15 low dip buyers showed up.  The buyers held the market up the rest of the day.  Breadth was -57%.  New highs were 20.  New lows were 273.

The futures failed at the 20 SMA.

The red count turned up again.  The sellers came out a bit today.

The positive backdrop from overseas markets brought out some buyers today.  The COMPX and SOX were even green.  However, every intraday rally in SPX was sold into.  It seems to me if we had a true selling climax on 10/11 the market should be able to do better then it is.  SPX was above the 200 DMA twice this morning, but was unable to hold it.  We now have had a seven day consolidation since the low.  There is likely to be another big move once this consolidation breaks.  I am starting to think if the break is to the downside the recent low might now hold.  I heard Pisani on TV saying that companies that have beat earnings expectations are not doing well.  The bulls have been counting on good earnings to drive the market higher.  If that does not do it then what will?  The bulls need to show up in force or this market could get into serious trouble.


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