Market Update


Last week the market dug itself out from the correction we have been in for the past few weeks. Looking at the charts, the Nasdaq, S&P, and NYSE are all sitting above their 50 day moving averages.

Why do I sound less than enthusiastic about this news? We never saw that huge breadth thrust we have seen at the bottoms of past corrections. Check out the market monitor charts and scroll back through the past year to see what I’m talking about.


We have seen some decent buying over the past week, but the 10 day breadth ratio still sits under our prime trading zone. (Charts are in progress for the 10 day breadth ratio).

At this point, I will nibble on some .25 size positions but plan on maintaining a defensive stance.

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