Coolhand's Market Analysis

Originally Posted by coolhand

Profit taking continued today. It really isn't a surprise given how much the indexes had risen over the past 2 weeks or so. Of course, the question is whether it's just another buying opportunity or is it different this time. Last year at this time it was different. But unlike last year, I haven't sensed any switches being flipped (as yet).




The charts show us dips along the way as price has steadily climbed. So now we have another dip forming. Volume has been average, so that's not a flag. Momentum has turned down. The selling may not be over; especially if the 50 dma is a target for this bout of weakness.



Breadth took an ugly turn lower today. It's still technically bullish, but it's in danger of getting flipped negative if price keeps falling.

The big news is that NAAIM did not change much from last week. They are still pretty bulled up. That usually bodes well for the bulls, but last year at this time they were bulled up when we got that big decline, so we want to pay close attention to the action given how high this market has risen.

I remain bullish for now.