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Wednesday, April 17, 2019

Daily update 4/17

Small caps were hit again.

Since SPX closed above 2900 on 4/12 there has been significant selling right after the opening bell.  I guess after the last two days exhibited that pattern more people jumped on the bandwagon today.  The futures dropped 19 points in the first 45 minutes.  Breadth was -57%.  New highs dropped way down to 78.  New lows picked up a bit to 27.  SPX held 2900 at the close, but the bulls had to work a little to support the market.

The futures tested the 20 SMA, but held.  They are right on the line after hours as I write this.

The green count is still hanging out above 50.  I see the red line turning up though.  We could get a negative cross pretty easily now.

I do not know who has been doing the selling right after the open.  Nor do I know how much they have to sell.  It is obvious the market is not going significantly higher until they finish.  They have been selling into upside gaps so overnight news is not the reason.  Tomorrow should be interesting with SPX perched right at 2900 tonight.  A break down could bring on some additional selling pressure.  On the other hand, SPX has consolidated four days above 2900 so a push higher off of support could happen.  The market still looks rather tired to me though. 


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