SPX confirmed its break of the Feb. low by closing below yesterday's low.
Heavy volume once again. However, late in the day there was yet another V bottom bounce. Breadth was -79%. New highs were 4. New lows spiked up to 1225. Oversold got more oversold. Common thing to do in a bear market.
The futures bounced 20 points after the close. I have no idea what that is about. They are still stretched to the downside.
This is a really, really oversold market.
The VIX popped over 30 today and the buyers stepped in. I do not like today's candlestick for a long lasting low as there is yet another V bottom. However, that does not preclude a bounce from here. I view this situation as a confirmed bull market top. A bounce from here that carries above the Feb. low does not change that. I think there will be a ton of overhead resistance up there. The market has to bounce sometime. With the VIX hitting 30 today maybe the dip buyers will be a little braver this time. If the futures are still up in the morning maybe the rally will stick.
Good article on pumping up GDP. Greetings From Stiltsville : Deficit Spending is not a Free Lunch
Bob
Trend table status
Trend | SP-500 | R2000 | COMPX |
Primary | Up 7/31/20 | ?- 3/31/20 | Up 5/29/20 |
Intermediate | Up 10/2/20 | Up 8/21/20 | Up 10/9/20 |
Sub-Intermediate | Up 1/20/21 | Up 1/7/21 | Up 1/19/21 |
Short term | Up 12/28/20 | Up 1/6/21 | Up 12/22/20 |
Don Worden of Worden Brothers (makers of Telechart software) used to keep a trend table before his health issues got in the way. I always found it useful. Mine is slightly different. Hopefully helpful. Up? or Dn? means loss of momentum. ? by itself means trend is neutral. ?+ or ?- means trend is neutral with bias of up(+) or down (-)

Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment