The outlook for the market direction for today was for the markets to move higher. It took quite some time and for a push lower before investors finally stepped in.
S&P Market Direction Intraday for August 4 2014
The one minute chart for today is below. You can see how long it took for the market to finally break out. The market direction pushed lower in the morning but when the selling seemed to dry up, investors came back in and bought stock. Their buying though only took the S&P to just above 1925. The market then wandered at that level through much of the lunch hour until it pushed up to the 1930 level. It stayed below 1930 for the remainder of the lunch hour and into the first half hour of the afternoon.
Finally in the afternoon the SPX pushed beyond 1930. As soon as it broke out it rose quickly to 1934, then pushed higher, staying over 1940 into the later afternoon.
Outlook Into The Close
Into the close the market looks strong enough to close around the 1938 to 1940 level.
Volume is terrible at just over 2 billion shares as of around 3:30. Declining issues were at 40% while advancing issues were at 57%. What was interesting was the number of new highs. 24 new highs by 3:30 versus 66 new lows. Still though, advancing stock holds the upper hand going into the close although I think the final few minutes could see the index take a tumble back to the 1938 level but for now the rally looks good enough to close near the highs.
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