The Bears Challenge Support - Posted by Coolhand

The bulls got jumped by the bears last week and all 3 TSP stock funds were hammered as a result. It isn't normal market behavior, but then again when was the last time we saw normal?

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Support at the 200 dma on both charts was broken last Thursday, but the bulls bounced the market on Friday, though it was a volatile trading day. The bulls need to seize control soon or risk bigger losses.

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Breadth bounced as well and remains bullish, but under attack.

So, NAAIM was less bullish last Thursday, but they were still bullish as a group. Thursday's decline puts their bullishness into question, but we only get 1 sentiment reading a week. Keep in mind that they got bullish when the 200 dma was claimed by the bulls. Now that same average is being challenged, so I suspect NAAIM may be neutral right now, but that's an educated guess.

I am going to a neutral stance on stocks until I can see whether the 200 dma does in fact provide support. This may be an interesting week.