The outlook for Monday was for stocks to move higher but caution was warranted. Considering how the morning started with the plunge over the Empire State Index it is perhaps surprising that the market ended higher on Monday and matched the outlook. But part of the reason was the technical condition of the market which was oversold but nearing neutral. Meanwhile oil fell again on Monday and stats showed that Japan’s economy contracted in the last quarter. Still stocks pushed back against the morning drop and closed higher on the day.
Advance Decline Numbers for Aug 17 2015
Volume was below 3 billion shares again on Monday with just 2.86 billion shares traded. 67% of that volume was to the upside by the end of the day. New lows are creeping higher again at 146 but new highs are also moving higher at 93.
The market has had terrible breadth for month. The number of new highs keeps dropping off which is why the market cannot move higher (obviously). At 148 new lows the market is back struggling against more lows than highs. This is rarely the backdrop for a successful break-out in any market.
Expanded Market Direction
Tonight’s market direction outlook is expanded into the members only section as I discuss a number of key aspects of the S&P from a technical perspective.
Members Only Market Direction Outlook for Aug 18 2015
The Market Direction Outlook notes for Aug 18 are for members for the reasons explained above. FullyInformed USA Members can read the latest Market Direction Outlook and review any trade ideas directly through this link. Members can also sign in to the full USA site here. Non-members can join here or read about the benefits of a membership.
Last Friday I had indicated
Stay FullyInformed With Email Updates
Market Direction Internal Links
Profiting From Understanding Market Direction (Articles Index)
Understanding Short-Term Signals
Market Direction Portfolio Trades (Members)