Maybe we aren't going to test that 50 dma after all. After 2 successive moves to the upside, with a lot of stuff starting to turn up, the market came crashing down on Friday. I can't say I am entirely surprised as I expected volatility to remain with us. But the move lower wiped out much of the earlier gains.
S&P 500.png
DWCPF.png
On the plus side, the 200 dma held on the S&P 500. But momentum and breadth turned down. In fact, breadth is neutral and not far from flipping negative again should the market test the lows again.
The options show the OEX neutral, while the CBOE is bullish. What is very interesting is that TRIN closed very high, while TRINQ closed very low. That sounds like chop on Monday. NAAIM is split between bulls and bears. The fact that NAAIM is more bearish than its been in a long while may not be a bullish sign.
I am backing off my bullish disposition for now, though I am not outright bearish either. The charts remain in no man's land with both sides battling hard for control of market direction. The market can go either way in my opinion and volatility will likely continue.
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