Retest of the 50 dma in Progress - Posted by Coolhand

It was bears turn to make a run out the gate today as price fell hard at the opening bell.

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I said yesterday that a retest of the 50 dma was still possible and we only had to wait 1 day to get that retest (the test is still in progress). Price closed just above that key average on both charts. To this point, support is holding, but will it last?

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Breadth dipped today, but technically remains positive. Since the 21 and 39 day averages have flattened, I'd look at it as more neutral.

NAAIM came in a bit more bullish today, but not enough to change sentiment a whole lot. I am now viewing the reading as more neutral to modestly bearish. We could see more selling with this reading, but I'd not expect a deep dive. We can also anticipate continued rallies mixed in, so basically volatility may remain with us. The 200 dma is still a possible target, so we'll have to watch for that if support doesn't hold.

I remain neutral.