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Tuesday, April 30, 2019

Daily update 4/30

The pension fund rebalancing found enough buyers to absorb the selling.

After an early morning sell off caused by GOOG's earnings miss SPX recovered to close in the green.  Breadth was +52%.  New highs spiked up to 190 which was the highest number since Jan. 2018.  New lows doubled to 31.  The volume was relatively high so there probably was some rebalancing going on.  No problem though.

The futures popped after the close.  I would guess that would be on AAPL's earnings as it is up 5% after hours.  If they are still there in the morning that would put SPX at a new high.

The green count recrossed above 50.  It remains well below overbought levels so there is some room to keep going.

SPX keeps marching towards 3000.  The global economic data continues to be poor.  Data from China today was worse than expected, but nobody cared.   All bad news is being ignored.  The Chicago PMI was way worse than expected today.  That made sense as it is highly reactive to the auto sector.  The recent GDP report show a lot of the unexpected strength was from a big build in automobiles.  That could lead to some slow down in production over the next few months.  Whether that matters or not I do not know. 

Technically the breadth data is strong and new highs are good.  The only question marks are from the other indexes.  The industrials and transports both need to make new highs.  Until that happens the possibility this is just a retest of prior peaks remains alive.  It would be good if R2000 and XLF continued higher as well. 


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