Price and Breadth Remain Bullish
New York Stock Exchange Advancing and Declining stocks, NYAD, continue to show bullish flow, registering yet another advancing session for the big cap index on Wednesday.
Summary
Futures are higher. BTC was 10% lower on concerns South Korea might start regulating crypto.
SPY is perched above its rising 9ema. As to price, it keeps rising, confirming what our breadth indicators tell us in the interim. Price action also tells us to stay bullish, despite the current malaise.
Institutional sentiment, on the other hand, bottom panel in the chart above, is a bit more reticent. Only time can tell if this current condition is, in fact, rotation or distribution. TICK cumulative is showing institutions are selling more stocks on the downtick, on a “cumulative” basis, as this indicator flattens or moves lower throughout the day.
SPY Block Trades
For the past few weeks, block trades have formed below price action. When blocks register after hours, we take notice. Wednesday blocks predicted the morning gap, as after-hours trades piled up near the closing price. Shortly thereafter they began to move steadily higher in tandem with rising price structure.
SPY this morning is trading above all blocks as we advance to the opening bell. We will look to these “after hours” trades as support, with price and breadth saying stay bullish.
As we go to print, SPY is trading 267.86.
Energy is still working, along with transports and industrial stocks. We will look for these to continue into the last trading days of 2017.
Keep in mind we are scaling out of positions into this move higher, accumulating cash for the next movers and shakers in 2018. Will CNBC commentators be correct? We don’t know. Only price, breadth and institutional sentiment can tell us. Watch for the latter, as it is us identifies what “they” are actually doing in real-time.
Happy Holidays,
Vinny
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