Well, no bounce today, which is fine by me cuz I really would like to see a big phat pull back. Not sure if that’s going to happen because news overnight from Euro-ville could change everything.
Buyers did not flood in and buy the market back up and $SPX is back where it was before the last BS pump job on the 13th. Does this indicate a change in market dynamics? Too soon to tell.
Daily chart of $SPX showing a couple of trend lines, both of which are holding at this point. Yellow line was created today and probably isn’t worth much, but if it holds then off we go again. If it doesn’t hold then we’re probably headed for a test of the green trend line in the 1420 area. And if that doesn’t hold the we could be headed back to the 1403 area, which is the low from the BS pump job on the 6th. But I’m getting ahead of myself so let’s just see how it goes tomorrow and Friday.
Breadth indicators, including $NYUPV, are recycling after today’s action. On a closing basis, $SPX is now 32pts below it most recent closing high on the 14th. That’s a decent drop, but breadth indicators are not giving climax signals yet and this suggests that we’ll get more downside action before this is over.
Be careful & GL