With the White House and the Republicans reaching an agreement on the extension of the tax cuts for a period of two years, it would appear that one of the bears' favorite arguments - an anti-business administration - could be going by the wayside. Futures were strong before the open.
SPX gapped higher eight points and continued onward another four points higher to put the high of the day on the chart just three minutes into the day. From there the index stair-stepped lower until just after noon when a rally attempt over a couple of hours bounced the index six points. But just before 3:00 pm sellers arrived to rescue the bears from their pain. The index closed near break even for the day but more than seven points below the open.
This was not the bullish session that it started out to be. Several indices touched two year highs just after the open but could not hold the gains. As I mentioned yesterday markets are trying to break above long-term resistance while overbought is not a method that is often successful. Backing off, burning off the overbought conditions, and approaching the resistance on a more measured pace is usually the way resistance is successfully surmounted.
For the SPX Index there were 226 Advancers/213 Decliners. On the NYSE 3,157 issues were traded with 1,522 advancing issues and 1,516 retreating issues, a ratio of 1.0 to one advancing. There were 431 new highs and 18 new lows. The five day moving average of New Highs is 190 while the five day moving average of New Lows is 11 and the ten day moving average of Net Advancing is 155.
Advancing volume was higher at a ratio of 1.94 to one. The closing TRIN was 0.52 and the final tick was 540. The NYSE Composite Index lost -0.01% today while the SPX gained 0.05%.
This was not the bullish session that it started out to be. Several indices touched two year highs just after the open but could not hold the gains. As I mentioned yesterday markets are trying to break above long-term resistance while overbought is not a method that is often successful. Backing off, burning off the overbought conditions, and approaching the resistance on a more measured pace is usually the way resistance is successfully surmounted.
For the SPX Index there were 226 Advancers/213 Decliners. On the NYSE 3,157 issues were traded with 1,522 advancing issues and 1,516 retreating issues, a ratio of 1.0 to one advancing. There were 431 new highs and 18 new lows. The five day moving average of New Highs is 190 while the five day moving average of New Lows is 11 and the ten day moving average of Net Advancing is 155.
Advancing volume was higher at a ratio of 1.94 to one. The closing TRIN was 0.52 and the final tick was 540. The NYSE Composite Index lost -0.01% today while the SPX gained 0.05%.
Volume was impressive at the open; the first quarter hour saw three times the normal volume. While volume remained relatively strong throughout the day, it fell off dramatically after the open. Looking at the nightly breadth indicators tonight we find a pretty mixed bag of indicators. But worth mentioning are the High Low Logic Index which has reached its highest value since November 9th and the McClellan Oscillator which dropped today on an up day. Both of these suggest downside ahead.
For the NYSE, relative to the previous 30 session average, volume was 55.08% above the average. Of the last 15 sessions 7 sessions ended with volume greater than the previous rolling 30 day average volume. Of the last 30 sessions, 20 sessions ended on a positive tick, 7 of last 10. For the SPX, the day's volume was 151.5% of the average daily volume for the last year. Volume was 195.5% of the last 10 day average and 220.6% of the previous day’s volume. Note: Volume today was the heaviest since May 20th.
Market breadth was flat today while advancing volume was strong. But the ten day average of Net Advancing continues to weaken. Market breadth is showing a divergence from the Price action and while Price is the Ultimate Indicator, Breadth often eventually wins when they diverge.
Total tick for the day was -58,000 and the average tick for the day was -37. There were 24 ticks greater than 600 and 86 ticks more extreme than -600. There were no ticks greater than 1000 and 4 ticks more extreme than -1000. The tick action suggests institutional distribution.
For the NYSE, relative to the previous 30 session average, volume was 55.08% above the average. Of the last 15 sessions 7 sessions ended with volume greater than the previous rolling 30 day average volume. Of the last 30 sessions, 20 sessions ended on a positive tick, 7 of last 10. For the SPX, the day's volume was 151.5% of the average daily volume for the last year. Volume was 195.5% of the last 10 day average and 220.6% of the previous day’s volume. Note: Volume today was the heaviest since May 20th.
Market breadth was flat today while advancing volume was strong. But the ten day average of Net Advancing continues to weaken. Market breadth is showing a divergence from the Price action and while Price is the Ultimate Indicator, Breadth often eventually wins when they diverge.
Total tick for the day was -58,000 and the average tick for the day was -37. There were 24 ticks greater than 600 and 86 ticks more extreme than -600. There were no ticks greater than 1000 and 4 ticks more extreme than -1000. The tick action suggests institutional distribution.
As I mentioned last week, and a rare correct prediction for me, we rally into early next week and drop to re-test support, see previous posts.
IRE and AIB are up really big for the last couple sessions, up 10% this am after 20+% move yesterday. My metals and uraniums have given back quite a bit but technically look good to re--test support. I got stops hit yesterday in miners, gold and silver so I have so cash to add at 50dma in Gold and 20dma in SLV. Good luck to all
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