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Friday, May 17, 2019

Daily update 5/17

More bad trade news as China talks seem to be on hold for now.

The market gapped down on trade headlines, but there was little selling interest.  That allowed the bulls to mount a big mid morning rally that took SPX positive.  However, two sell programs hit the market.  The first one was late morning.  After it finished the market bounced enough to get SPX back to green.  Another sell program hit in the afternoon.  Breadth was -71%.  New highs were 109.  New lows picked up to 77.

The futures touched the 20 SMA, but managed to stay above it. 

The red count turned up, but remains below 50.

The futures held the 20 SMA keeping the bounce alive in theory anyway.  I suspect if the news flow allows there will be more upside.  I also believe that like yesterday and today some investors will be selling into any strength.  Monday will be interesting.  Will the bulls or bears show up?  Closing below today's low would probably indicate the downtrend is resuming.


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