SPX opened higher and pushed considerably higher though the early afternoon. However, sellers entered the picture late in the day and sent SPX down 18 points from its high. Breadth was a strong +69%. New highs were stable at 73. New lows dropped way down to 53.
The futures rallied back above the 200 SMA, but failed to stay there. They are currently just below that line. Will the bulls come back again or will the 200 turn out to be stiff resistance.
The red count backed out of oversold, but remains well above 50. The more important thing to note is the intermediate indicator dropping to 50. This is highly likely to continue lower over the next few days. The door to a bigger pullback is definitely open.
The bears started selling into strength before the day was over. That kept SPX from closing above the prior day's high. The 2800-15 area could be significant support. The bulls may defend that area if tested again over the next day or two. The market is just oversold enough that the dip buyers might show up again. I think the investor mindset has changed on the China trade deal though. It seems likely to me that 2800 will eventually fail.
Bob
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