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Friday, November 2, 2018

Daily update 11/2

AAPL rained on the bulls parade.

SPX traded down into the 10/31 gap before bulls came to the rescue.  There was a huge pop at 2:30 as Trump made comments that talks were going well with China.  The market held on to a lot of that pop.  I am not sure we would have closed nearly that well without that headline.  Breadth was -54%.  New highs were 28.  New lows were 82.  Today's early gap up and rally took SPX slightly above the 20 DMA, but sellers showed up again.  SPX was 56 points lower before it stopped going down.

The futures ran into trouble slightly above the 50 SMA.  The pullback held above the 20 SMA.  Bounce attempt is still alive for now.

The green count turned down, but remains above 50.

SPX just hit its severely down sloping 20 DMA.  The extreme short term oversold condition has been worked off.  This bounce started with a sharp V bottom.  It is not clear there was selling exhaustion.  I prefer to see a basing pattern for a while at the low or a retest.  The last three days on the 60 minute chart show a big gap up and then a sideways pattern.  Is that a consolidation to go up or a top that will fail?  The market has not done enough to say it has turned the corner.  We will just have to wait and see what happens next week. 

Have a great weekend.


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