Coolhand's Market Analysis

It looks like volatility is back again, though for how long I don't know. Tuesday's selling pressure took back the bulk of Monday's gains, though the DWCPF gave them back and bit more. There didn't appear to be any real reason for the reversal, but there doesn't always have to be one.



Price on the S&P 500 did not quite fill that last gap created by Monday's rally. Momentum has turned back down again.



The DWCPF was hit harder the S&P 500, which is par for the course. Momentum is a bit weak, but not diving to the downside. The selling pressure did minimal damage, but will there be any follow through?

On Monday, TRINQ closed at a very low level, which often means a reversal is coming the following day, and it did. Normally, the reading will also move in the opposite direction to some extend. However, this time it closed a tad lower. This could very well mean more selling pressure for Wednesday, but TRIN is on the high side, so I can't be sure. Then again, the market closed weak on Tuesday, so I am inclined to look for more downside.

Breadth is falling off in the short-term, but remains in a bullish configuration as does liquidity.

Overall, and as I alluded to above, I suspect we have more downside coming on Wednesday, but it's too soon to get beared up given how close the indexes remain to their highs.