The indices (DJIA 13000, S&P 1399) had a hiccup yesterday, closing down more than just fractionally. Nevertheless, they remain well within their primary trends (1) short term trading ranges [12022-13302, 1266-1422] and (2) intermediate term uptrends [12276-17176, 1292-1872].The real question, of course, is, will there be follow through to the downside that would extend to the lower boundaries of one or the other of aforementioned primary trends? Lacking omniscience, I have no idea; but were it to occur, our Portfolios would be Buyers.
Volume was flattish; breadth declined with the on balance volume indicator just getting worse. The VIX spiked for the fourth day in a row and is up seven out of the last eight sessions. It closed above the upper boundary of the very short term downtrend. Our time and distance discipline is operative now; but this move is not a positive signal for stocks.
http://www.bespokeinvest.com/thinkbig/2012/8/30/breadth-remains-weak.html
Friday, August 31, 2012
The Morning Call--Bernanke's big day
