Breadth Has a Bearish Follow-Through, but Bounce Time is at Hand
We are now officially on the side of the bear. With the break of price and breadth, it looks like the bears have the market in their hands and that price needs to consolidate lower.
The Zweig index is actually not too bad here. A hold today and a bounce up could leave us with a false breakdown alert.
The CVI is showing the weakness that has us aligned with the bears:
We should have a decent bounce today on the NHs/NLs. The next two days will us have watching the NH/NL closely. Back into the 80s and we might be into something more than a snapback.
Our trenders both remain bearish:
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