Bearish Action

The combination of the lower financials and heavy call buying today is bearish. We are also running up against resistance in the S&P 500. The factor that is keeping me away from the bear side is that the 10 day moving average of the advance decline line actually favors the bulls over the next few days.

4 comments:

nicasurfer said...

Did you happen to AAPL into the close?

Tsachy Mishal said...

A lot of strange action for a big up day.

Market Owl said...

I think calling today's action as bearish is kind of pushing it. Even a bear like me admits that we are seeing bullish action. The market rebounded very well off the Dubai news and we're 4 points away from a 52 week high on SPX.

If you are going to say today's low put call ratio and lagging financials is bearish, than you have to admit that the previous day of relatively high put call ratio and outperforming financials was bullish.

Tsachy Mishal said...

I did say it was bullish yesterday.