Coolhand's Market Analysis

Originally Posted by coolhand

We got another test at resistance (50 dma) today.




Early on in the trading day it appeared the bulls might have a great day and successful test. Instead, they had an okay day and a tentatively successful test as the bears managed to push price back down in afternoon trade. Price closed above the 50 dma on both charts. The problem is it did so only marginally. This is not a convincing test and only shows

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Originally Posted by coolhand

Price got rejected at resistance today on the S&P 500, but found support on the DWCPF.




I won't make too much of it because price didn't move all that much. A retest should be expected.



Breadth dipped back under the shown averages and is now technically bearish.

The battle continues. I remain neutral.

Originally Posted by coolhand

The bulls had their way with the market today, tacking on significant gains that has price now testing the 50 dma.




We can see that price closed right on the 50 dma on the S&P 500 and just above it on the DWCPF. What we need to see is a continued push past that average (not necessarily in the short term) to help firm it up as support. Note that resistance at the 3500 area of the S&P (February peak) is

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Originally Posted by coolhand

The bulls took back a chunk of recent losses today. It was a decisive reversal, but does not yet change the intermediate term trend, which is down.




Price remains below the 50 dma on both charts, which is now an area of resistance. We'll have to see if the bulls can test this average and whether they can successfully retake it.



Breadth turned

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Originally Posted by coolhand

We had a bit of a roller coaster ride today with the averages closing mixed by the close.




The bulls were not able to recoup much, if any, losses today. We can see that the DWCPF dipped for a modest loss.



Breadth was a bit weak and remains bearish.

NAAIM came in a bit more bearish today and I see the reading as bearish overall,

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