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Friday, May 31, 2019

Daily update 5/31

Surprise.  More tariffs.


Trump announced tariffs on Mexico to coax them into slowing down the immigration trains to the U.S.  after hours last night.  That sent the futures down and they stayed there all through the day today.  Breadth was -68%.  New highs were 86.  New lows were up again to 247.  The blue candle indicates SPX closed below the lower Bollinger Band so price is a bit extended.
 

The futures are not telling us much we don't already know.  The market is falling.
 

The red count finally hit oversold levels.

SPX hit the 2750 target early in the day and held all day.  Now that we have a short term oversold condition we might see a bit of a bounce.  However, I don't think we are completely done going down.  Volume was elevated today, but I am not seeing anything that looks like panic.  Given the current technical condition of the market some panic is probably needed to generate a sustained rally.  The first week of the month is often bullish so maybe the bulls will try another bounce early next week.


Have a great weekend.

Bob 

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