Looks Like the Uptrend Has Sputtered Out
The action so far Thursday is confirming a change in the character of the market. I've been writing for a while now that we need to let the price action be our guide. After the weakness Wednesday and the follow-through today, it is clear that the recent uptrend has sputtered out and that the market is in danger of rolling over.
I don't want to be too negative here, as this is the first bout of real selling we have seen so far this year. But it is very important to take some defensive action, just in case this isn't just some healthy consolidation. So far the action today constitutes confirmation that the bears are gaining control. We have seen a few minor bounce attempts, which were turned back, and the market hit a new intraday low around midday. That is an indication that there are "stuckholders" who are looking for exits into strength....119 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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