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Thursday, May 2, 2019

Daily update 5/2

The bulls defended 2900 on SPX.

SPX just touched 2900 when the buyers showed up.  SPX ended the day 17 points off the low.  Breadth was -53%.  New highs dropped way down to 97.  New lows spiked up to 60. 

The futures tested below the 50 SMA, but were back above it by the close.  It is still not clear whether the futures will hold and bounce off the 50 or break it.

The red count only picked up a little bit.  It remains below 50 and above the green line.  It is still not clear whether we are forming a braided pattern or not.

FED day moves are often retraced, but not always.  I would say this was the most selling pressure we have seen since 3/22.  There wasn't any real follow through on the downside after that day.  Will that be the case again?  Will the bulls show up tomorrow and put an end to the silly idea of a pullback?  Will the bears attack and try to break 2900?  Good questions, but my crystal ball does not seem to be working.


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