Thursday, August 23, 2012

Needed Pullback or Start of Something Worse???

So are we simply seeing a needed pullback here or is something bigger developing?  It's probably too early to tell, but here is what we know.  The Nasdaq is still holding its nine day moving average.   Both the Russell and S&P broke their nine days today but did hold their twenty day moving averages.   We're a bit oversold here and being down three days in a row, we may see a bounce soon before any more selling comes into the market.   For what its worth, I am mainly in cash here (took one long today) but since I see some decent setups once again going into tomorrow, I am willing to take a few as they trigger.  Now if we break down further tomorrow, especially through the moving averages mentioned above, things will change completely in my opinion.   For now, we're having a needed pullback that may end up being a buying opportunity.   That's about all we can tell for now. 

Charts from TC2000, Courtesy of Worden Brothers, Inc.

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