Solid Gain Keeps Traders Guessing - Posted by Coolhand

So, after Monday's first trading day of the year loss, the market follows up with a bounce on the 2nd day. While it was a decent bounce, it didn't retrace all of Monday's losses on the S&P. The DWCPF retraced almost all of its losses.

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We can see from the charts that the uptrend has at least stalled (short to mid-term) for now, but the charts still remain bullish. Technical damage is still limited.

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Cumulative breadth remains bullish.

This market isn't exactly easy to figure out right now. A lot of potentially market moving events are in play this month. Some are not visible yet. Today's bounce calls into question how this month is going to go. And it may stay that way (or not) for the time being.

I am going to remain neutral. I'd like to see what NAAIM does later this week once they've had time to assess the first week's trading activity.