Coolhand's Market Analysis

Originally Posted by coolhand

The bears took price lower today. The action started out negative in morning trading, but price rose from opening lows and peaked about 1 hour after the open. The DWCPF was positive at the peak. But after that, it was a choppy ride downhill till midday and then a feeble attempt to recover that failed.




Price on the S&P is now testing the 50 dma. It's holding for now, but I'm not confident that will last.

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Originally Posted by coolhand

After yesterday's heaving sell-off, the market opened on a positive note. The S&P continued to rise into mid-day then peaked and sold down into the close, erasing much of its intraday gains. The DWCPF was more up and down, peaking later in the afternoon than the S&P, but also sold down in the final hour or so. Both closed positive, but the late afternoon selling pressure is not bullish.




Price remains

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Originally Posted by coolhand

While I've maintained my bullishness for some now, I've cautioned that I am wary of this market even as the indicators (and smart money) were still largely bullish. Market character can change quickly under the right (or wrong) circumstance. In this case, a new administration was a potential circumstance because the market is always looking ahead and if sees something it doesn't like it will let everyone know it. Is this what we are seeing now? Perhaps.

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Originally Posted by coolhand

The market started out positive again today, but it quickly headed south, struggling in choppy trade all the way into the close. Both the S&P and DWCPF closed out in negative territory.




So, we have weakness in the short term (to this point), but no technical damage worthy of concern. Momentum is now falling on the DWCPF, but still flat on the S&P. I note that RSI on the DWCPF has fallen out of overbought

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Originally Posted by coolhand

After spending the first hour or so in positive territory, the market took a quick nose dive into negative territory. The selling didn't last long at all and the buyers stepped in and slowly took the market back near or above the neutral line by the close.




You can see the long tails on the candlesticks. Price remains near the top on both charts.

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