Sellers stay more in control.
In the earlier post after the PPI data, I warned about the underside of the broken trend line might stall the fall. It did.
I also outlined that the 100 bar MA and the 38.2% retracement of the move down should stall the correction. It has.
So the sellers remain more in control below the yellow area in the 5-minute chart above. Stay below, more bearish. Move above, more bullish - at least intraday.
Taking a broader view on the daily chart, the low last week stalled against key support (swing levels and the 100 day MA in the area of the low). That bounce off support was the catalyst for the rally back higher. That rally stalled at the swing high from early August.
So there was great support below and pretty good resistance above. We traded to an intermediate level today at the lows with the swing high from mid-July and the 61.8% holding the support.
