Tuesday,
The markets sold off further today catching up to reality as news pours in showing the economy is not going to provide reason to grow stocks from here… Not yet at least.
The DJIA lost another 130 points today and the MACD Indicator formed the bearish crossover. Today’s candlestick activity calls for more selling, but with the market already down -300 points in two days, I would look for a bounce sometime tomorrow. It is important to note that a bounce is not to be mistaken for a rally; you buy a rally, but short a bounce and that is what we will be doing until this market really bottoms.
The NASDAQ lost 32 points for the day and still has much lower to go, but it too (like any sell off in the market) is not likely to fall straight down. I do look for a bounce tomorrow, and if one is not forth coming tomorrow it only becomes that much more due. I would not be a buyer of any stock here for the long side, but would be shorting any bounce with quality short sell signals.
Today’s MPT (Market Power Trend) Rating, which tells us what “Smart Money” is doing in the market and where support/resistance is came in at (00); this tells us we have already fallen to one support level and this further confirms the anticipation of a bounce, though we believe it will be a “dead cat” bounce.
As Always; Be Smart, Be Patient, & You Will Be Successful.