Looking at the daily chart we see a hammer is printed as there was support at the 50dma but the close below the previous day's close and that is a negative. On the weekly chart you can see we closed below the 200wkma. So we seem to be in a sideways mode with ten up days and ten down days in the month of November. Bias is bearish (Technically)
Futures were strong overnight due to strong holiday shopping numbers, Asian markets responded positively and European markets were in positive territory. This all changed shortly before the open as news from the UK came out showing that money supply is barely moving and a weak bond auction in Italy once again put traders back into uncertainty mode.
The week began with a significant move downward and the SPX moved ten points lower within four minutes of the open. The downward push continued almost unabated until putting the low of the session on the chart at 10:05 am, almost sixteen points down. Buyers attempted a rally which failed and the index tested the lows again just before noon. Then a successful test of the lows ensued which brought in buyers and put the bears on edge, the index surged to close fourteen points off the lows.
For the SPX Index there were 181 Advancers/301 Decliners. On the NYSE 3,131 issues were traded with 1,275 advancing issues and 1,747 retreating issues, a ratio of 1.37 to one declining. There were 64 new highs and 25 new lows. The five day moving average of New Highs is 71 while the five day moving average of New Lows is 20 and the ten day moving average of Net Advancing is -55.
Declining volume was higher at a ratio of 1.06 to one. The closing TRIN was 0.78 and the final tick was -21. The NYSE Composite Index lost -0.23% today while the SPX lost -0.14%.
For the NYSE, relative to the previous 30 session average, volume was -9.31% below the average. Of the last 15 sessions 5 sessions ended with volume greater than the previous rolling 30 day average volume. Of the last 30 sessions, 18 sessions ended on a positive tick, 5 of last 10. For the SPX, the day's volume was 79.9% of the average daily volume for the last year. Volume was 95.3% of the last 10 day average and 226.9% of the previous day’s volume.
Declining volume was milder than the declining issues; this is often a bullish sign. The ten day average of Net Advancing jumped from -330 to -85; this is basically neutral and certainly no longer indicates a bearish trend.
Total tick for the day was 49,000 and the average tick for the day was 32. There were 171 ticks greater than 600 and 91 ticks more extreme than -600. There were 15 ticks greater than 1000 and 8 ticks more extreme than -1000. The tick action suggests institutional accumulation.
Intraday volume spiked on the down moves early in the session yet also spiked on the late afternoon surge. The nightly breadth indicators suggest that we may have bottomed again today; we’re convinced we continue to see range bound trade, possibly with an upward bias.
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| Above 200wkma resistance coming at 200dma (81.7) |
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| Tremendous move in the dollar since QE day |
Materials, Precious metals, oil and miners were very strong yesterday despite and upward move in the $DXY. The $DXY is nicely above its 200wkMa. Interesting to see the afore mentioned group up along with the dollar. I'll be watching this dynamic carefully.
No change in my long term outlook for continued inflation, bursting of the bond bubble, a global debt contagion like the plague with China and India escaping most of the damage.
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| TLT found support at the 200wkma and is making a big move to the 150dma (Long TBT) |
Long Gold, Silver, Uranium, short bonds, and picking my spots with individually strong stocks as time allows.
Have a great day everyone
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