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Tuesday, May 21, 2019

Daily update 5/21

No bad news overnight so "they" pumped the futures up a bit.  After the open "they" started hitting the bids. 


Despite strong breadth (+75%) SPX did not make much headway after the open.  New highs were 106.  New lows dropped to 54.  Today's high was 4 points short of the 50 SMA.


The futures are showing a weak bounce from the oversold condition so far. 


The green count crossed above the red line.  It remains well be 50.  The question is will this be a bounce cross and bring out the sellers or not.

Sometimes a bounce like this can get legs.  However, I think the trade situation is becoming clear to everybody no matter what they say.  The tariffs are here to stay and there may very well be more bad stuff to come.  The current bounce has acted like a pump and dump scheme as expected.  I do not know how long this pause will last, but it seems pretty likely the end result will be lower prices eventually.

Bob

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The information in this blog is provided for educational purposes only and is not to be construed as investment advice.