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Friday, August 2, 2019

Update 8/2

Test of the 50 DMA.


SPX dipped its foot below the 50 SMA this morning, but bounced back.  Breadth was -59%.  New highs slipped to 156, but were still strong.  New lows continued higher to 163.  That is very elevated this close to the highs.


The futures found support at the 200 SMA, a good place to bounce from.

I think the dip buyers were busy this afternoon snapping up the bargains.  The VIX touched 20 which could bring out more buyers on Monday.  The 50 DMA is a logical place to bounce from as well.  This move down from yesterday afternoon was news induced.  As we know many times those moves are retraced.  A bounce next week seems likely.  The bulls need to show strong buying though if the market is going to continue to new highs and beyond.  The bears showed real interest in selling for a change.  A failed rally attempt would be likely to induce more selling.  Next week will be important.


Have a great weekend.  Peace.

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.