The Dow couldn’t go up for ever, it had to experience a day in the red in the very near future.
Today the time has come, and it is making its presence known, by wiping out more than two day’s worth of gains for the bulls and to retest the breakout level on SPX’s declining trend-line, that was broken last week to the upside .
Is this the end of the road for the bulls? I don’t think so, but some caution certainly won’t hurt here. I was stopped out of most of my positions today (all but one for profits), and I bought one additional stock on the dip today. So right now, I am sitting in 80% cash, waiting to see what the market’s next move will be, and then pounce on the opportunity.
Should the bears be interested in extending today’s losses into tomorrow, I’ve put together a list of stocks you can take stab at, that hold some very bearish patterns, but have yet to really see its true downside.
Have at it!
