S&P futures are down 8 points to pre-open. Going short below 1310 on the SPX. MACD is bearish as well.
Yesterday's session began with a large gap high but once again the high of the day was painted in the opening moments as traders were immediately fading the gap. The SPX bounced significantly about forty-five minutes into the session but before 11:00 am sellers hit the tape again and hit it hard, taking the index down almost eleven points before 1:00 pm. After some sideways trading, traders hit the buy button and the last ninety minutes of the day were mostly a ramp higher as the SPX closed just a bit into the bottom half of the intraday range.
New Highs continue to be quite low. Declining volume was higher than advancing volume in spite of advancing issues being higher than declining issues. This is often a sign of weakness. But there are also indications of an impending bounce. Our guess is that we bounce and it provides an opportunity to fade.
Volume was lighter than Tuesday's. The intraday pattern shows a large dip in volume on the late morning rally followed by a spike in volume while the index sold off early in the afternoon. Volume then decreased in the afternoon as the market rallied. Looking at the Breadth Indicators we see consistently bearish looking indicators; something you wouldn't expect to see on a green close. But today's session traded more like a down day as the SPX lost seven points from open to close.
28.8% of the SPX are above their five day moving average, 27.8% are above their 10 day average, 48.4% are above their 20 day moving average, 53.6% are above their 50 day moving average, and 83.8% are above their 200 day moving average.
No comments:
Post a Comment