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Tuesday, June 11, 2019

Daily update 6/11

More profit taking.

Global markets were up overnight causing a gap up in the U.S.  Sellers showed up to take some profits and pushed SPX slightly below yesterday's low.  However, buyers showed up and held the market up into the close.  Breadth was dead even.  New highs contracted to 130.  New lows picked up to 35.

The futures paused as they should after the sharp run up.  They could continue that pause until the 20 SMA gets closer.

Two days of profit taking and so far there have been enough buyers to absorb the selling.  The selling looks mild enough the market should head higher after this pause.  That does not mean we won't pullback a little further first, but probably not too far.  A new high in SPX seems likely.  However, keep in mind new highs in the summer months are often a little fickle.  The market might not see much upside follow through.  I will keep watch to see if any real selling pressure develops that might indicate the bounce could fail.

The transports and small caps were relatively weaker today and have been on this bounce.  That would seem to indicate there is still some worry about the economy.  That could easily keep a lid on the market.


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