Friday's market action saw a big intraday reversal that saw price erase all or most of Thursday's losses. The week ended mixed with the S&P posting a decent gain of 0.85%, but the DWCPF falling for a loss of 2.12%.
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The reversal on Friday shows long tails on the both charts, which may mark a low. Price on the S&P closed back over its 50 dma, while the DWCPF fell a bit short and remains under that key average. Volume was elevated, which may be a tell. Momentum stalled and may be ready to reverse. It's too soon to say in this market, however. It is becoming more deceptive of its intention.
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Cumulative breadth got back over its 21 day EMA, but I'm calling it neutral rather than bullish.
The latest TSP Talk sentiment survey came in neutral for the 2nd week in a row. That isn't far from the NAAIM reading on Thursday, which I called bearish, but not overly so. Getting overly bearish has for years been a prescription for pain in a market bent on rising the majority of the time.
So, the Friday reversal looks promising for the bulls. I was bearish heading into Friday and the reversal has me wondering if the worst is over. I am certainly not ready to get bullish in this market, so I am moving back to a neutral stance until we see whether Friday's action put in a bottom or not.
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