Coolhand's Market Analysis

Originally Posted by coolhand

The bulls took control of the action today as price on both the DWCPF and S&P gapped higher at the open and remained at elevated levels throughout the trading session.




The S&P easily posted a fresh all-time high, while the DWCPF saw price close above its 50 dma for the first time in the last 8 trading sessions. Momentum ticked higher on both charts. Is this the breakout we're looking for? It might be with the S&P, but the DWCPF has more work to do as resistance looms not terribly far above its closing price.



Breadth looked very good on the day and signal is solidly bullish right now.

NAAIM came in solidly neutral. That's not much help at all; especially with today's positive action.

It does remain a bull market and I think its heavily coated in Teflon. Still, while the S&P has marched higher within a rising channel, the DWCPF broke its channel several weeks ago and has been moving more sideways (within a range) for about 6 weeks now. So, we don't have an even market at the moment. Maybe the DWCPF plays catch-up. Maybe it doesn't. It's too soon to be sure. With a neutral NAAIM reading I think I'd give this market some room and not get overly bulled up on the positive action we got today. I continue to favor the S&P over the DWCPF until proven otherwise.

I am going to remain neutral with a modest bullish sentiment toward the S&P.