SPX closed above the 20 SMA, but it is severely sloped downward. SPX also hit the lower Keltner channel line which could provide resistance. Breadth was +77%. New highs were a paltry 8. New lows contracted again to 11.
The futures confirmed a break of the 50 SMA. They have not made much progress yet so it remains to be seen if they can stay above that line.
The green count actually fell a bit today. I am not sure that is important, but it is a bit odd.
The market ran into a few sellers this afternoon after a strong morning. There could be some resistance in this area from multiple sources including the FED day mini melt down. With the market in a short term overbought condition a pullback here would not be a surprise. If we keep going higher it is another 30 points or so up to the more significant resistance I mentioned on Friday. All I can say is to expect volatility. We are still in an unstable situation.
Interesting targets for 2019.
We appear to technically be in a bear market. There was a Dow Theory sell signal also. Despite that the Wall Street targets are extremely optimistic. There will be a lot of surprised people if things continue to go south.
Bob
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