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Thursday, November 8, 2018

Daily update 11/8

Typical pause day after a prices explosion.

There was selling at the highs today so there is some resistance in this area.  Breadth was -52%.  New highs were stable at 73.  New lows were up a bit to 63.  I should have noted last night that SPX  is just below the 100 SMA and the upper Keltner (20) channel line (blue channel).  That might pose some resistance here along with the 280 level on SPY.

The futures are consolidating above the 100 SMA.  No confirmation of a break yet.  The 100 often provides support and resistance.

The market is short term over bought at resistance.  In a strong market SPX powers right on through.  I don't think we have a strong market so the upside could be tough to come by.  The 50 DMA still lies above should the bulls decide to push it up there.  Much above that seems unlikely.  The volume pattern and the strength we have seen in breadth suggests a retest of the low should be successful.  Sometimes there are pullbacks into Thanksgiving.  Based on history that would be a good time to complete the bottom.


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