Coolhand's Market Analysis
The Bears Are Gathering - Posted by Coolhand
by , 09-10-2020 at 03:55 PM (664 Views)
Originally Posted by coolhand
The bulls tried to add to Wednesday's gains, but were eventually beaten back by selling, which took the indexes into negative territory in afternoon trade. Confirmation of the negative action came today in the form of a bearish NAAIM reading.
The 50 dma is the current battle area and is providing support to this point, but I suspect it will not hold.
Breadth remains bearish.
The latest NAAIM reading showed a significant shift from bullish sentiment to bearish sentiment. This tells me that the smart money does not expect a quick turn back higher, so I believe we are looking at overall negative action for more than just a few days. If support at the 50 dma fails, watch the 200 dma for support.
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