Thursday, May 18, 2017
Got a bounce today as the Dow came back 56 points on good volume. The advance/declines were barely positive. The summation index is heading lower. Not the greatest move up in the world but at least we've stopped going down. There's probably more to go on the downside but how much is the question. Yesterday certainly got the attention of all the players so we'll see where we go from here. Getting short term oversold for the S&P 500 but not there yet. I think the best thing to do now is let Friday pass and try and figure out what to do over the weekend. That way you can take the time to go over possible scenarios and be ready for next week. GE was up a few cents on heavy volume. If GE is putting in a bottom here, that would be a positive for the overall picture in my view. Gold was off over ten bucks on the futures as the US dollar had a bounce as well. The XAU lost 2 1/4, while GDX shed 3/4. Volume was good. That's probably it for the recent bounce in gold. Mentally I'm feeling OK. The shock from yesterday is wearing off but we are still in an event driven theme for the market until this calms down. The thing with Trump is that he never really does calm down but the market usually doesn't pay attention. So we'll have to see if all the fuss is for real or not. I'm still thinking that we just had a distribution top put in and it will be a while before we attempt new all time highs again. But maybe I'm wrong. Maybe this is the last of the sellers getting out of the way before we get a good volume break out to the upside. There's always two sides to the story but I'm leaning towards the negative one at this point. So we'll see. Europe and Asia were both lower overnight. We'll close out the week tomorrow.