Some positive action from the open today and huge closing volume (40M on the SPY in last 20 minutes and afterhours). After hours SPY was down 50 cents and tomorrow may see additional positive momentum before the Friday bearish bias kicks in. We did bounce off the August lows, which is a relief, but there's really no change in the current downslope trend. Just to complicate things next Tuesday begins earnings season and that may likely set the tone for the coming Fall trend.
The lower chart shown is the NYAD on a daily basis and based on the pattern we've seen over the past 4 months the outlook is neutral to bearish.....for now.
The NYAD is shown below (daily bars)