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Thursday, December 20, 2018

Daily update 12/20 Greetings From Stiltsville : Deficit Spending is not a Free Lunch

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


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