Coolhand's Market Analysis

Originally Posted by coolhand

The market was doing relatively well for about half the trading day and then the announcement of increased capital gains taxes was released and that was just the thing the market wanted to hear and it dove on the news. All in all though, the damage was not that bad on the day.




Surprisingly, the S&P got hit harder than the DWCPF, which was trying (the DWCPF) to break resistance around the 2210 area before the selling began. Momentum is falling modestly on the S&P and is flat on the DWCPF.



Cumulative breadth dipped, but remains bullish.

NAAIM came in almost unchanged, which keeps them bullish.

I am not expecting a lot more selling on the capital gains tax announcement, but the market may feel otherwise and it may not tell us right away. Keep in mind that news is near impossible to use as a predictor of market behavior. Often, the market sees it coming (before we do).

In any event, I am going bullish again on the S&P given the NAAIM reading and will remain neutral on the DWCPF for now.