After yesterdays volatility explosion today was rather quiet. Breadth was -52%. New highs dropped way down to 75. New lows picked up to 20. The intermediate trend indicator is showing some weakening. The odds of the long awaited pullback are rising.
Each of the three bars since yesterday rallied above the 20 SMA but failed to stay there by the bar close. During market hours the futures climbed above yesterday afternoon's high five separate times, but were solidly rejected. That is the most firm resistance I have seen on this entire rally. Things may have changed.
The red count crossed the green line. The bears are attempting to take control in the short term.
There was enough dip buying activity to hold the market up today, but I think things changed yesterday. For the first time on this rally I noticed brick wall type of resistance. That usually leads to some kind of pullback. It appears some people have decided it is time to take some profits. Further downside tomorrow should confirm that. The bulls need to conquer recent highs to restart the rally.
Bob
1 comment:
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