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Originally Posted by coolhand

The rally may have faded a bit today, but it still closed with good gains.




I note that both charts show price probing fresh all-time highs today, but neither was able to close at that level. However, this market could propel past resistance (we're still in a bull market after all). I suspect it will, but I'm not sure the market is ready for it just yet. Momentum is starting to turn back up on the DWCPF,

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Stocks rallied out of the gate on Tuesday, then we saw the bears step up and take the morning gains away before things stabilized, and the bulls were then back in business. The Dow ended the day up 168-points, after losing 383 on Monday. The Nasdaq and the small caps led on the day, and yet another decline in the dollar kept the I-fund in the running.

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Originally Posted by coolhand

So, after Monday's first trading day of the year loss, the market follows up with a bounce on the 2nd day. While it was a decent bounce, it didn't retrace all of Monday's losses on the S&P. The DWCPF retraced almost all of its losses.




We can see from the charts that the uptrend has at least stalled (short to mid-term) for now, but the charts still remain bullish. Technical damage is still limited.

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The New Year start with new highs in some indices at the opening bell, but things quickly got away from the bulls and there was steady bout of selling into the early afternoon before things stabilized. The Dow, which was positive at the open, ended the day down 383-points, which was 450 points off the high of the day, but also 342 points off the low. The losses were similar in many indices and it looks like they all found support in some key areas on the charts.

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Originally Posted by coolhand

So, the first trading day of the year starts us out on a negative note. That's not a good sign at face value and could be a problem if there is follow through.




The S&P gave up most of it's past week gains, but it did close well of the lows of the day. But that candlestick isn't pretty. The DWCPF continued to give up gains, now closing negative for 5 out of the past 6 trading days. Momentum is falling

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