After Tuesday's selling both the Nasdaq and NYSE Oscillators are (holding) bullish - but another day of selling might change that.


Of the market internals I do follow, the Percentage of Stocks Above the 50-day MA started to crack (it is usually the first to do so). However, the bullish divergence in its MACD holds with an overall technical picture which is net bullish. The other market internals; Bullish Percents and McClellan Summation indices, still support the January bottom.

The S&P is doing its best to map out what I thought would happen over the coming weeks. This is the easy part - what happens once it gets to January lows is more tricky and much will depend on the state of market internals (such as the ones discussed above) when it gets there.
