A weak unemployment report sent the futures lower before the open. However, there was not a lot of selling interest into the weakness. That allowed the dip buyers to support the market and end the day with a bounce.
Notice the volume dropped today indicating a lack of sellers into the price weakness. Breadth was -54%. New highs dropped way down to 46. New lows came in at 49.
The futures found support at the 100 SMA. They ended the day with a bullish engulfing bar. That suggests a bounce is possible on Monday.
The red count is getting close to an oversold level.
SPX failed to confirm a break of the 200 DMA. Next week is option expiration which is usually an up week. However, the weekly chart shows a doji bar last week followed by a bearish engulfing bar this week. That tends to be a bearish pattern after a big rally. It is important for SPX to take out the recent highs. A failed rally here could increase the selling pressure. If the market keeps falling the 50 DMA becomes a likely target.
Have a great weekend.
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 (-)

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Very nice content, Share Market Tips
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