Today's gap up was met with some selling right from the start. Nothing too serious, just a constant hitting of the bids. There was a sizable sell program mid day, but it was short lived. It served to hold the market down until the last hour though. The last hour brought a rally to get SPX back to even. Breadth was slightly positive. New highs were good again at 120. New lows were up to 17. Volume was light as investors await the upcoming earnings season.
The futures are in a holding pattern for the moment.
The green count remains above 50, but slipped a bit today.
The market has come to equilibrium as everybody waits for more information to act on. Even positive trade talk could not spark more buying today. It is now all about earnings. Unfortunately I do not have a crystal ball to predict how the market will react to earnings season. I have seen day to day volatility be high in situations like this. Some days a group of positive earnings can spark buying while a group of negative earnings sparks selling. Should that happen it could persist for a few weeks until investors get a grip on the overall situation.
Bob
No comments:
Post a Comment