Thursday, February 28, 2008

Slight Correction

After looking at the final volume on the S&P 500 and the Dow, today was a distribution day because volume was higher. It was still well below the 50 day moving average. However, if we get one or two more distribution days soon, I would definitely change my slightly bullish outlook. I also noticed that according to my Market Monitor scans, we almost crossed back over to a bearish signal - 812 to 811. That tells me there is a lot of uncertainty on both sides of the market right now and that although the early part of this week was bullish, we could still go either way here. I would trade accordingly - take only small positions if you must trade or better yet, wait until we get a little more clarity. Being that we are at the end of the month probably doesn't help things either. Good luck.

UPDATE: According to IBD, today was not a distribution day, but on my charts I still have volume being a bit higher on the S&P and Dow, so I am not sure where they are getting this from. It was not up much at all so maybe they are taking that into consideration. Either way, I still am hesitant to do much of anything right now long or short until we get more clarity. For what it's worth, my short watchlist is growing while my long watchlist is shrinking. Good luck.

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