The markets faded the gap down at the open today and traded sideways until the last hour which finally saw a strong break to the downside. There is a part of me that wants to get bullish on this market but the only problem is, with all the nice rallies we have seen in the last two weeks, nothing has changed. We are still in a solid downward trend, which is proving to be a formidable opponent for the bulls and significant areas of resistance are not breaking whatsoever.
So even though the market seems to have had a positive bias the past two weeks, the technicals still show the markets in the gutter. Until that changes, there is no point in changing our bias to the short-side as it currently is.
Here’s the Nasdaq and S&P charts…