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Originally Posted by coolhand

The bears put up a fight last week to keep price from trending higher. I had said over the past week or so that the rising 50 dma was nearing a positive cross of the 200, which is technically bullish. This is certainly not lost on the bears, who are trying to turn this market around (lower). The 200 dma is also a key area in this fight.




Volume was elevated on Friday as price closed below the 200 dma

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Headlines of a surge in virus outbreaks in a number of states sparked selling in the second half of the week pushing stocks into negative territory. Despite around 3% in losses for U.S. stocks this week, the market remains essentially on hold. After weeks of relentless upside indices now are jumping around in a sideways trading channel; the week just happened to end at the bottom of that range. The possibility of another economic lockdown keeps investors ready to take profits and get out of stocks. ...

Stocks opened lower but rebounded on Thursday, grabbing back about 40% or so of Wednesday's losses, but it is from where the rebound started that was more important than the gains. The Dow was up 300-points, and the gains were fairly broad across most indices. By the close, advancing issues outnumbered declining by about 2 to 1 while share volume was 3 to 1 in favor of advancing issues over declining, after being under water for much of the day.

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Stocks fell sharply on Wednesday as seasonal tendencies seem to be coming right on cue. The talk of coronavirus cases increasing didn't help but late June it is a rebalancing period for many funds, and yada, yada, yada, the Dow lost 710-points. Selling begets selling and profit taking from investors who may have made a lot of money in recent months is not too surprising. But is there more to it than that?

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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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