The bears started off the week with another attack on price that sent the indexes lower, though the market did close well off the lows of the day.
The most notable thing about the charts is that price on the S&P 500 closed under the 50 dma today. The question is, will it stick? The DWCPF remains in better shape, but it too has been under pressure. Momentum took a turn lower.
Breadth technically flipped bearish, but it's not a strong signal as yet.
As I said earlier today, the smart money isn't usually wrong for very long. Normally, they get right within 3 days, but we're well past that point. Up to this point, technical damage has been very limited, but now we see the S&P 500 testing the 50 dma and closing under that key average. I'm still not bearish, but this market may challenge weak bulls.
Let's see how the bulls respond to the S&P 500 support being tested. I am remaining bullish given that is where the smart money is and the fact that the DWCPF remains in decent shape despite the weakness.