S&P Fights Off Bears For Solid Gain on the Day - Posted by Coolhand

A familiar theme continued in market trading today. The S&P showed resilience in fighting off early (moderate) weakness and turned back up to eventually post a solid gain. The DWCPF also started out weak, much weaker than the S&P, and while it did stage a comeback in the afternoon, it was too little, too late and it closed out the session with a moderate loss.

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We can see that the S&P finished the session not far off its all-time high, while price on the DWCPF continues to dig deeper and closed under its 50 dma for the 2nd day in a row. It's hard to be bullish on that DWCPF chart. I am going to go neutral on it at this point. Momentum continued to fall on the DWCPF, while the on the S&P it appears that it "may" be turning back up. We'll have to see. Price on the DWCPF is currently testing support under the 50 dma. Let's see if it holds.

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Breadth ticked higher on the day, but its gains are modest. It fits in with what we see with the struggling DWCPF that this bull market is not acting as strong as it once did. This may be an early warning (which is why I watch the smart money).

Speaking of smart money, NAAIM tempered their bullishness, but they were still bullish overall. They are definitely not showing much enthusiasm for the short side of the market to this point.

I had hoped the DWCPF would break out of its long term range by now, but it hasn't and instead is struggling just to maintain the 50 dma, which has flat-lined. That index is going nowhere right now. For this reason I am moving back to a neutral stance on the DWCPF, but will maintain a bullish stance on the S&P.