Tuesday Recap: A look inside the market

Next target 1165, if that breaks than we test the 150dma

The session began much like Monday’s session; a significant and sharp move downward at the open. The index quickly put the low of the day on the chart just eleven minutes into the day, almost fourteen points lower. 1174 was successfully test yet again as bulls came charging in to buy the dip. But the high of the day was painted on the chart at 1:22 and the closing hours had a distinctive “sell the rally” feel about it. Bears manage to force the tape back into the middle of the daily range at the close.

Monday’s action, while quite similar early in the day, had a bullish feeling at the close. Today’s action, on the other hand, much less bullish as there was a give back toward the close. Yet here we are at 1180; closing above where we were ten days ago as the market gyrates intraday with a net result thats has been sideways.


For the SPX Index there were 131 Advancers/350 Decliners. On the NYSE 3,118 issues were traded with 1,003 advancing issues and 1,994 retreating issues, a ratio of 1.99 to one declining. There were 74 new highs and 28 new lows. The five day moving average of New Highs is 73 while the five day moving average of New Lows is 21 and the ten day moving average of Net Advancing is -133.

Declining volume was higher at a ratio of 1.72 to one. The closing TRIN was 0.87 and the final tick was 156. The NYSE Composite Index lost -0.7% today while the SPX lost -0.61%.

For the NYSE, relative to the previous 30 session average, volume was 48.09% above the average. Of the last 15 sessions 6 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 93.2% of the average daily volume for the last year. Volume was 107.6% of the last 10 day average and 110.1% of the previous day’s volume.

Declining volume continues to be lower than declining issues. The ten day average of Net Advancing does not suggest a deep pullback at all. We place a lot of emphasis on market breadth because it is usually correct; breadth does not yet suggest a deep pullback.

Total tick for the day was 20,000 and the average tick for the day was 13. There were 100 ticks greater than 600 and 105 ticks more extreme than -600. There were 8 ticks greater than 1000 and 5 ticks more extreme than -1000. This is about as balanced as the tick gets.

This continues to be a challenging market. We have support at 1174 which continues hold but with each repeated test odds increase that support fails. SPX was oversold, it bounced, and once again approaches oversold. This is often seen prior to a big move down. The next several days should make the market’s plan much more clear.

The $DXY had a turn around day, as it opened higher, put in a high of 81.30 and and closed at 80.80. It wouldn't surprise me after so many up days it takes at least a couple days breather. This will be positive for the markets. This morning the futures are up pretty nicely. Gold and Silver as well as other commodity names were up big yesterday. 

We have a bunch of economic data at 8:30 so the futures could get dinged a bit but I think we go up the rest of the week before the next leg down.