Once again, the market gets the masses leaning one way (the bears this time) and turns price on a dime.
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It was a big move too. The kind that usually signals a bottom is in. There was volume behind the move and price certainly retraced a good chunk of recent losses. Is it out of the woods? It might be, but the charts still show key resistance levels that have not yet been tested, though the S&P took out its 200 dma today.
The OEX was bullish for Tuesday's action and it remains that way heading into Wednesday. The CBOE is neutral. Cumulative breadth turned back up hard and actually flipped positive. That kind of move bodes well for the bulls. My intermediate term system is now showing hints that the market may have turned the corner, but it still remains negative (it's not a fast moving system). TRIN and TRINQ closed at very low levels and that's bearish for Tuesday, but given the market may have turned, even if we see some give-back it may not be much.
I think today's action certainly supports looking for a spot to get reinvested, but it's only one day and while it was a big one that appears bullish, there's always the chance that the lows get retested.
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