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Wednesday, June 5, 2019

Daily update 6/5

Upside follow through sort of.

SPX gapped up and sold off enough to close the gap before buyers showed up.  Breadth was barely positive.  Downside volume was heavier than upside volume.  The SOX and XOI indexes were down noticeably and R2000 was down somewhat.  It was a rotational day rather than broad market strength.

The futures ran into the 50 SMA and stopped for the moment.  They are currently down a few points from the 4 PM close.  There is still a ways to go to get back to the 200 SMA.

The green count crossed 50 and is approaching overbought levels.

The internals today were weak compared to the amount SPX was up.  I think the bulls need to see another up day on strong internals.  Until that happens this bounce could still turn out to be a dead cat.  The bulls have a chance to take control, but the power is still up for grabs at the moment.


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