Not Sold on the Uptrend
In case you missed it, Investor's Business Daily called a new market uptrend after Friday's shortened session of trading that saw major averages follow through with solid percentage gains on the fifth day of a rally attempt. The call was surprising to me because of the market's light volume, but I decided to embrace it nonetheless.
Unfortunately, Tuesday's higher-volume decline by the S&P 500 already calls the nascent uptrend into question. After a follow-through day, it's generally not good to see a higher-volume decline in a one- to three-day window after the follow-through day. Market precedent says the nascent uptrend may not amount to much. Investors got spooked by comments late in the day by Senate Majority Leader Harry Reid, who said little progress was being made in the fiscal cliff talks....387 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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