Coolhand's Market Analysis

Originally Posted by coolhand

After putting some gains together earlier in the week, the market pulled back a bit today, which does nothing to hurt the uptrend.




Both charts still look good as price continues to whittle away at yearly losses. The 200 dma is really not far off and is almost certain to get tested.



Breadth remains bullish.

The big news of the

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Originally Posted by coolhand

The 3rd up-leg continued today with price closing with solid gains.




We can see that price is now making a run toward the 200 dma on both charts. Momentum is rising and volume was robust.



Breadth is looking very good and remains solidly bullish.

It will be interesting to see what the next NAAIM reading will be, which is tomorrow.

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Originally Posted by coolhand

It didn't take long since the neutral NAAIM reading for the market to break higher. That was the most likely outcome, though the timing is not easy to discern.




The next up-leg may have started. We can see that price moved further away from the 50 dma on the S&P 500, while price on the DWCPF closed above that level for the first time in about 2 months. Momentum is beginning to turn back up.

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Originally Posted by coolhand

The market closed lower overall last week. I consider the weakness to be part of the climb higher. We need consolidation here and there to keep it going (historically).




Price on the S&P 500 closed above its 50 dma. There is plenty of resistance to get to the next big hurdle, which is the 200 dma, but first we need to see price remain above the 50. The DWCPF closed almost neutral for the week. Momentum

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Originally Posted by coolhand

The market was largely flat on somewhat volatile trading today.




We can see that price on the S&P 500 is testing the falling 50 dma again and closed just under it. The DWCPF may test it simply when the average falls down to the top of the trading channel if it does not break out first. Momentum is rather flat.



Breadth rose, but remains neutral.

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