Coolhand's Market Analysis

Originally Posted by coolhand

Friday's negative action capped what ended up to be a lackluster week.




Price fell on both charts Friday. The S&P ended up with only a very modest gain on the week, while the DWCPF took a moderate weekly loss. It's definitely been a slog for the S&P the past 2 weeks and also for the DWCPF. Upward traction has been difficult during that time. But the downside hasn't been there for the bears either. And it's still a bull market, so unless something changes I have to keep looking higher. Momentum has turned down on both charts.



Cumulative breadth fell on Friday, but the signal remains bullish.

Our TSP Talk sentiment survey remained bullish this week, which keeps us in line with the NAAIM reading.

So, while the indexes have been tracking sideways of late, the fact that this is still a bull market should carry significant weight unless proven otherwise. And since NAAIM remains bullish, it's easy to remain committed to the long side for now. The fact that the bears have been a non-factor helps too.

I remain bullish.