Coolhand's Market Analysis

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 back up, but remains negative (bearish).

I said that the NAAIM reading, which was modestly bearish, suggested volatility. Volatility can occur during a trading day or can manifest for days to weeks as the bulls and bears battle for control of price. For the moment, the bulls have yet to prove they have recaptured control of price. A successful retest (positive breakout) of the 50 dma would help in this regard, but that remains to be seen.

I remain modestly bearish for now.