If you would like an email sent to you when I update the blog please send an email with "subscribe" in the subject line to traderbob58@gmail.com. To be removed use "unsubscribe".

Search This Blog or Web

Thursday, August 1, 2019

Update 8/1

Potential trouble.

The bulls came out to buy yesterday's sell off.   They were doing just fine until news of more tariffs hit the market.  Breadth was -64%.  New highs were 258.  New lows spiked up to 129.

This morning's rebound took the futures back up to the 20 SMA retracing yesterday's FED induced sell off.  However, the tariff news sent the market below yesterday's low.

The red count crossed 50 giving the bears a chance to take control.

On the monthly chart SPX made a somewhat bearish looking doji bar at the highs in July.   There is clearly a possible expanding volatility top formation going on.  Is the market still forming a massive bull market top?

There was significant intraday selling for the first time since this rally started in early June.  The bulls definitely need to show up in force now.  Another downside thrust is likely to put the market into pullback mode like we saw in May.  Given the weak internals the last few weeks that could happen.


No comments:


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