Coolhand's Market Analysis

Originally Posted by coolhand

The bears tried to take the market back down early on in the trading day, but the bulls turned it back up to erase some of the losses.




The DWCPF actually closed marginally higher, while the S&P was thrown for a moderate loss. Still, no technical damage was done and price remains not far under the 200 dma.



Breadth held up well and remains modestly

...

Originally Posted by coolhand

The bulls turned it right back around after Tuesday's decline.




In fact, price on both charts closed at a higher high. Looking at the S&P 500, we can see that price is snugged up just under the 200 dma.



Breadth remains positive (bullish).

I suspect that a test of the 200 dma is coming soon. Perhaps tomorrow for the S&P 500. That

...

Originally Posted by coolhand

After 3 positive days, the market stepped back on Tuesday. That's normal action. However, the 200 dma looms very near on the S&P 500 and that's a potential resistance area.




Not much change to the charts. We remain in somewhat of a sideways pattern right now with price sitting in the upper end of the range.



Breadth remains positive, but is close

...

Originally Posted by coolhand

In my last post, I said that the indicators were largely neutral, which included smart money (NAAIM). I also expected more up/down action as a result of the reading.




I guess we're starting out with up action this week as the major averages tacked on big gains. That isn't a surprise given it appeared that at least a short term bottom was probably put in last Wednesday. And if you look at where price closed;

...

Originally Posted by coolhand

The bulls gave up ground last week, but the good news is that the 50 dma appears to be support (to this point).




Yes, it was a lower low that formed, but the 50 dma was not tested. We'll have to see if the bulls can provide some follow through upside action early this week. Momentum is rather flat.



Breadth remains negative, but not by much.

...