I'm going to go straight to the charts tonight as nothing happened this trading day to change my outlook.
NAMO and NYMO both remain on sells, but are very close to their respective EMAs.
More evidence of bullish internal action today as the A/D line remains bullish in spite of early weakness today.
TRIN and TRINQ are very close to flipping
Don't be fooled, there's underlying strength in this market in spite of the red close.
First, the market came roaring back after being down significantly intraday, so today's losses need to be seen in that context. But there's another reason to believe the market is stronger than it may appear, and that's because internals were deceptively strong today as you'll see in the charts.
Good earnings continue to be largely ignored by the market.
It would seem the market makers are intent on shaking weak handed bulls loose before turning things back up again. At least that's my perspective.
The market is shrugging off a pretty rosy earnings picture and is instead focusing on the negatives such as this mornings disappointing June durable goods number, which was down 1% vice up an anticipated 1%.
The Fed's latest Beige Book didn't inspire buyers either.
But then again this is exactly what the doctor
It was a relatively quiet trading day today and the market took the opportunity to digest recent gains and begin to alleviate an overbought condition.
The July Consumer Confidence Index came in at 50.4, which was well below the 61.0 that had been expected, but for the most part the market didn't have a strong reaction to this bit of data.
In my view it was a good day, as we needed to reestablish support at higher levels by doing some backing and filling. I don't think
Updated 07-28-2010 at 06:45 AM by coolhand
It was another good day for the bulls as the S&P 500 managed to settle above its 200 DMA for the first time in a month.
Volume was on the light side, but if you saw my last blog you'd know many folks aren't buying this rally. And if they aren't buying this rally volume would be light. No surprise there.
So expect the bulls to press their advantage.
Here's the charts:
We're really seeing some upside
Updated 07-27-2010 at 05:11 AM by coolhand