Stocks Take a Break - Posted by Coolhand

As I said yesterday, the market was due for a pullback. Obviously, we got a pullback today.

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Price didn't fall a lot, but weakness may not be over yet either. Volume is still on the low side. The 50 dma is now in the process of having a positive cross through the 200 dma. I am not anticipating that this by itself will drive a rally, but we should note that it is happening as it is bullish.

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Breadth remains bullish, but did fall on the negative action.

So, price still remains caught between the June peak (about a month ago) and the 200 dma area. Maybe that 50 dma cross will have a more immediate impact than I am anticipating, but I'd rather see where NAAIM is when the next sentiment survey is released. I remain bullish.