Market Character Appears to Have Changed - Posted by Coolhand

As I suspected since the selling started last Thursday, market character appears to have changed. How deep will this go? I have no idea, but support lines are already being tested.

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Price closed under the 50 dma on the DWCPF, while price on the S&P 500 closed just above it. Volume remains elevated.

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As I mentioned in my last post when breadth was still looking sideways I said that if the selling continued, breadth will begin to fall. And now it has. It is now bearish.

Because of the suspect nature of this decline, I am not leaning toward a quick recovery. I am also not expecting a gloom and doom final outcome. For market timers, an opportunity is likely at hand.

It isn't often I go against NAAIM, but I am flipping bearish. They were bullish at the beginning of the deep decline early in the year, but eventually went bearish. This action is similar enough to get defensive despite that last bullish sentiment reading.