Daily charts, shorter term (you can click the charts for larger image):
SPX:
* 226 stocks in bullish mode. Uptick but still below 50%. * BullsPower at 42, BearsPower at 20. Bulls keep the upper hand. It's too early to tell if there will be a bearish takeover. * The market bounced back to close right at the dW at 6330. This is to be considered overhead resistance, so it will be interesting to see if there is follow through to the upside. One strong rebound day does not make for a new rally.
* ELC goes down. * THRUST goes down with bearish divergence and drops below the zero line for the first time since April. We now have to watch how much downward thrust develops. * The Repellor is at 6221 and was tested but not broken. We may see a second test soon, but I can't promise anything.
* Rotator goes down. Both components keep weakening. * The Bands are still rising, but at a slowing roc. * That too is something to keep an eye on. If the Bands turn down it becomes a more dangerous situation. You can see recent examples in the chart.
* SwX stays red- bearish. * MoM goes down, with bearish divergence. * The green trend channel and the blue line support just above 6200, gave us a nice rebound day. That's positive. * As long as we see so many indicators point down, often with bearish divergences, this market is not out of the woods. * This is a typical setup where capital preservation is the first priority. There are large recent gains to protect, and if the market breaks out to new highs, then you can always rejoin. * We do not need to catch every potential point of profit. Taking the safest part of available profits over time is a winning strategy in the long run. Know when to play safe.
