On Friday, I said that I was leaning bearish the early part of the new week on some NAAIM shorting. While the early part of the trading day was positive, it obviously did not last as the market slowly gave up and gains and then dropped below the neutral line by mid-day followed by a decline that took up the rest of the trading session.
S&P 500.png
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My intermediate term system flipped negative today, though not decisively. What that means is that some of the signals are barely negative. Breadth, which was positive, is now neutral. The options show the OEX bearish and the CBOE modestly bearish.
The indicators suggest we may have more downside to go and another test of the 200 dma on the S&P is very possible. But support has been holding, so I suspect it will continue to hold should price come close to testing it. Having said that, price is also starting to get compressed between the falling 50 dma and the still rising 200 dma. The chart remains neutral, but sooner or later price is going to break out of its trading range. The question is, which way?
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