Added at 8:00pm ET:
I’m sure this is pretty obvious to everyone, but the market is struggling. It’s Thursday and $SPX is still down 2pts on the week. Two green days have not brought us back to where we were last week. The last two green days have come on very weak intra-day breadth. On Wednesday we had 1579 advancers vs 1442 decliners and today we rallied with 1605 advancers vs 1429 decliners. On Wednesday almost twice as much volume went into advancing issues but today advancing volume exceeded declining volume by only 80 million shares. By contrast, in a strong market advancing issues would number somewhere around 2000, decliners would come in close to 1000, and volume would be heavily skewed toward advancing issues somewhere around 3:1. Based on today’s numbers, $SPX should have only added a point or so, not the 4.66pts it actually did add. It’s seems to me that there’s some churning going on under the hood, which is code for “distribution.” If this kind of dynamic does not change right away, then the markets just won’t be able to go up and will fall of their own weight. There’s always tomorrow and maybe things will be different but if not then I’m going to start getting extra krispy paranoid which really isn’t much of a stretch for me.
GL & be careful.
Just a chart of the Q’s for now. Thinking this was just a dead cat bounce today. Really have to wait until tomorrow’s close to know for sure.