Coolhand's Market Analysis

Originally Posted by coolhand

So much for the downside and mixed closes. Thursday's trading saw both the S&P and DWCPF post gains.




Price on the S&P appeared to be losing steam until Thursday, when the bulls spiked it to the upside. The DWCPF broke its 3 day losing streak with a somewhat modest gain. Both charts are bullish, but the S&P would seem to be a more favorable index as upward momentum is rising on the S&P, but flat on the DWCPF.



Cumulative breadth rose and remains solidly bullish.

The latest NAAIM reading saw these money managers largely turn off their limited shorts and ramp up their long exposure. The reading is back to bullish.

When NAAIM went neutral the week before I said I wasn't expecting anything dramatic, but that the possibility for some selling had gone up. We did get some selling, but only in the DWCPF. We'll have to see now if the DWCPF can keep today's reversal going.

I am moving to bullish on the S&P, but will remain neutral on the DWCPF.