SPX held above support, but made a new low close for the current correction. Breadth was -77%. New highs slipped to 16. New lows were up again to 591. Volume was not particularly high. Not likely to be climactic.
The futures are treading on thin ice. Will they bounce or break down?
The red count is back in oversold territory.
Dec. has started on a rough note, but has a history of reversing during the second half. Will history repeat or is the market going to head down to test the Feb. low? At least we are oversold enough to bounce. Next week is option expiration which often has an upside bias. In addition there is SPY option support for next week at 260. If the news flow helps a bit a bounce from here is doable. We will just have to see whether the bulls or bears show up on Monday.
This is a long, but an interesting read from John Hussman Bubbles and Hot Potatoes
Have a great weekend and remember the reason for the season.
Bob
No comments:
Post a Comment