Daily update 3/8

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