Maybe Not As Bad As It Looks

 We got off to a pretty ugly start this morning, but overall, the day was not nearly as bad as it could have been. Volume was quite muted, and we eventually found support just above the 50dma, coming off the low of the day for a respectable finish. Of concern is the undercutting of the trend line, just by a hair, but proving it is vulnerable, but the fact that we reversed quickly after breaking it is a good sign. If there we are looking for a reason to be bearish, today wasn’t really it.

The Nasdaq had a much worse day, but still is not ready to crack. Price relative is descending but still has not broken down, and the 50dma provided support. Volume was low here, as well, so we missed another distribution day.

Even the Dow had a rough day, but again, held the 50dma and bounced up. The price relative line is starting to move up, which is a sign the market is starting to go defensive, which will not be conducive to a rally.

The Russell 2000 is again becoming the sore toe of the market. It is holding the 50dma by it’s fingernails, and price realtive is dropping like a rock. It is still above the previous low, so it;s not panic time yet, but for some reason this is really struggling now. The market can rally without it, but not for long.

The market up trend is still intact, but it looks like it is weakening, and another day like today might just put it to bed. Which is why I am expecting a bounce tomorrow.

I will have the new highs update shortly.