SPX closed below the lows of the last three days. Breadth was -58% which is rather light with SPX down nearly 2.5%. Hence the idea of rotation. New highs picked up to 13. New lows actually slipped a bit to 40.
The futures ended the day just below the 20 SMA. There is no confirmation of a break yet.
The green count slipped back below 50. One slight positive is the intermediate indicator is still in extreme oversold condition. That might lessen the damage somewhat if the market continues down from here.
It looks like tomorrow is make or break for the current bounce. Since the futures have not confirmed a breakdown yet the bulls have one more chance. Further downside tomorrow is likely to wind up in a test of the Dec. low in the days ahead. The employment report comes out tomorrow and Powell is scheduled to give a speech at 10:15. They usually release the text ahead of time. Either or both of those could move the market tomorrow. I won't venture a guess as to what will happen.
Bob
No comments:
Post a Comment