Well, this market certainly seems weaker than I anticipated, though the S&P 500 has not exactly rolled over yet.
S&P 500.png
DWCPF.png
The DWCPF is looking more on the bearish side. Will the 50 dma hold? A fair portion of losses were retraced on Thursday, but I'd not bet that we won't probe lower.
The options are neutral heading into Friday. NAAIM came in a bit more bearish (very small shift), but what was interesting was that the short positions were taken off. The bears among them do not trust the downside at this point and as a group they are only moderately bullish. Breadth technically went negative, but it's tracking sideways.
Today's reversal may mean a bottom is in, but I am not overly confident of such. I am however, still leaning bullish for the time being. The RUT has to bottom and turn back up, which it has yet to do. That would likely signal that a swing to the upside may begin.
I am certainly willing to shift my sentiment from here, but that will depend on technical indicators, which remain somewhat mixed.
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