Crazy few days in the market here lately and of course I have some opinions on what is taking place. I will say this, I had a wretched time trying to get out of my positions on Friday. After seeing the jobs number come in, I thought we were going much lower then the initial reaction and went ahead and closed out my long positions. Had I been a little more “settled” I would have been much better off. But that is done and over with.
I’m not going to post any charts with this, instead I just want to give you my general thoughts…
1) Trend-lines are broken all over the place = bearish
2) Lower-High and Lower-Low has been formed across the board = bearish
3) Russell and NASDAQ are probably the most bearish of the indices I track
4) Volume across the board for today’s rally was very unimpressive
5) Weekly charts are showing the indices being overbought, while the daily charts show the indices as over sold.
6) 20-day moving average was pummelled last week, but the 50-day moving average is showing support at the moment.
7) Today’s rally provides bears with a great entry to short the market with, using the recent highs as the stop-loss
8) Overall, my sentiment of this market has changed to being a cautious bear. I’m not going to go short too quickly, but I do believe that within a 2-day period, market sentiment has drastically changed.
HAVE A GREAT EVENING!