The bounced continued Thursday. And 50 dma is now getting tested. Price closed right at that average on the DWCPF, but a little bit above it on the S&P 500. Not only that, but it closed near the highs of the day.
So the market is at a key area of resistance now, but the action has been bullish, which bodes well moving forward.
S&P 500.png
DWCPF.png
The options are neutral to bullish for Friday. Breadth flipped positive. Interestingly, NAAIM saw some bears go short in today's poll, but they are in the minority. Maybe we get some short-lived weakness soon, but I don't think we'll see anything of import.
My feeling is that the market will continue to bias to the upside as it retraces losses from over a week ago, but a pullback here and there along the way is certainly not out of the question.
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