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Originally Posted by coolhand

The battle over the 200 dma is back in focus again as stock prices fell sharply lower today.




The 200 dma did not get tested on the SPX, but it did come close. The DWCPF shows that price did fall under it intraday, but managed to close pretty much right on it. Momentum is falling.



Breadth took a hit and is now neutral.

NAAIM

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Originally Posted by coolhand

We aren't moving fast, but if you're a bull, you are moving in the right direction right now. The afternoon session was weak as gains were tempered. I'd really like to see a breakout to the upside rather than dancing not far above the 200 dma.




Upward momentum is still rather flat. That 50 dma continues to close on the 200 (of course). A positive cross is likely to occur in about a week or so, assuming

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Originally Posted by coolhand

It wasn't an exciting trading day, but the bulls did manage to post gains by the close.




Price is tracking sideways right now, but as long as the 200 dma holds it won't be a problem. Note the rising 50 dma approaching the 200. We could see fireworks if it crosses or gets close to crossing. The bears don't want to see a bullish sign like that as it would likely create additional headwinds for them.

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Originally Posted by coolhand

The market posted pretty decent gains last week, but it wasn't obvious early on how the week would go as the 200 dma was being attacked from the previous week. To this point, the bulls have so far defended that key average. Will it hold? Well, NAAIM came in pretty bullish and that's about as strong an indicator as I can point to. Keep in mind that the smart money does not have a crystal ball, but they do have contacts and info that we generally do not. That's part of what makes them smart money.

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Originally Posted by coolhand

The tug-of-war continued (no surprise) today as the S&P 500 and Wilshire closed near the neutral line.




The charts remain bullish overall despite the volatilty.



Breadth dipped, but remains bullish.

NAAIM got more bullish this week. I suspect that when the 200 dma held, they saw that as proof that the bulls had control. There is

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