The market covered some ground above and below the neutral line on Tuesday.
S&P 500.png
The S&P 500 broke to the upside out of the triangle, but it could hold on and eventually sold back down for a modest loss. Momentum is negative, but not overly so.
DWCPF.png
The DWCPF was also running to the upside earlier in the trading session before succumbing to selling pressure that took it back down to close for a moderate loss, but price remains above the rising 50 dma (though it did get tested). Momentum is still biased lower.
The options are looking neutral to my eye this evening as we head into Wednesday. Cumulative breadth is deteriorating, but is still positive.
The intra-day reversal to the downside is not bullish, but this may be the retest I was looking for. Or not. But it's still the bears that have the most to fear in this market even if the short-term outlook is neutral. The indexes could turn quickly and leave many on the sidelines once more. I am expecting that upside move, but I am not so sure it's imminent. Breadth may need to get negative and the technical indicators stretched more than they are. I remain neutral, but I'm looking for an entry to get long into the S fund again. That will likely be the bigger move even if the market has more work to do on the downside first.
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