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Wednesday, October 31, 2018

Daily update 10/31

Follow through buying.

SPX shows strong volume again.  There was a late day sell off that took SPX off its high.  That is a common phenomenon at the end of the month.  The market usually undoes that the next day.  Breadth was +58%.  New highs were 25.  New lows dropped way down to 133.

The futures confirmed a break of the 20 SMA.  That is the first step for the bulls.

The green count crossed above the red line.  The bulls are attempting to take control in the short term.

So far so good for the bounce.  SPX has taken the first steps for the bulls to take control.  Obviously the bulls need to keep applying upward pressure.  As oversold as we were that seems likely unless we get some bad headlines.  Many companies are exiting the black out period for share buybacks so that could apply some upward pressure.  Historically the market almost always rallies into an election.  We are also coming into the first of the month which usually has a bullish bias.  All things considered the bulls should be able to take charge for a while. 


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