Today is one of those days where the indices are very misleading. It looks like we had mild action with the Dow Jones Industrials leading on the better-than-expected jobs news. Unfortunately, those who chased the gap up on the jobs report were slammed. The reversals in the Nasdaq and the small-caps were particularly nasty. I mentioned yesterday that I was looking for the "suck in" move and that turned out to be the jobs news this morning.
Does this action signal a short-term top? I've been a bit premature in anticipating a failed bounce within a topping process but that is starting to look like what we have now. Sellers used the strength to exit and we didn't have much of a late bounce. The more speculative small-caps and technology names are being hit while the stodgy and safer Dow names are holding....165 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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