Bears make money, for now

Friday's action was important. After being up about 80 points, the DJIA gave up all gains and some more. This action was very predictable as I've stated in the past few blogs.

I expect the downtrend to continue, at least for the near-term, or a consolidation. The MACD remains negative, while RSI is showing a market approaching oversold levels, but not yet.

Notice the overall trend lines: Overall upward channel, with a current downward channel.

My take: continued downward pressure / consolidation here. Still bearish. Watch the 50-day MA as a possible support level.