Dead Cat Bounce? - Posted by Coolhand

After yesterday's heaving sell-off, the market opened on a positive note. The S&P continued to rise into mid-day then peaked and sold down into the close, erasing much of its intraday gains. The DWCPF was more up and down, peaking later in the afternoon than the S&P, but also sold down in the final hour or so. Both closed positive, but the late afternoon selling pressure is not bullish.

View attachment 48336
View attachment 48337

Price remains well below the peak on both charts. Momentum remains negative. The 50 dma is a very possible target.

View attachment 48338

Cumulative breadth flipped positive again, but that's not reassuring given the afternoon swoon.

NAAIM saw a sizable drop in bullishness today, but they are still bullish. They appear to be waiting to see if the market is really rolling over or whether the bulls are going to trample the bears again.

I am not as confident about this market as I was. Anything can still happen, but I tend to think market character may be changing. My sentiment is neutral, but I think the selling may not be over. Let's see of the bulls prove me wrong.