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Friday, November 9, 2018

Daily update 11/9

Global sell off.

The market opened lower as global stocks were down.  SPX kept falling most of the day until it got 1 point above the 200 DMA.  SPX rallied strongly into the close.  Breadth was -67%.  New highs dropped a bit to 60.  New lows were up to 104.

The futures tested the 20 SMA and bounced.  This keeps the bounce alive.

The green count dropped out of overbought.

The bounce is still alive for now.  A lot may depend on what happens globally though. Oil has taken quite a dive which brings up questions about the global economy.  We know it has been slowing for quite some time.  Is that slowing about to accelerate?  Even with the late day bounce QQQ was still down 1.7%.  R2000 was down 1.8%.  That would indicate a considerable willingness to sell.  Which probably makes the retest of the low scenario more likely then the potential V bottom we have at the moment.  The market could mess around a few more days before deciding to do that though.

It has been made widely known about how strong the year after mid term elections has been historically.  I even saw an article in the USA Today about it.  I have to wonder if something that widely talked about will actually happen.

Have a great weekend.


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