I don’t have much to say except that I’m getting less bullish as each day passes. This longer time frame of the Nasdaq shows a bearish wedge forming and a break below will probably send this index back around the 2600 level.
Do I think that’s going to happen? At this point no. We would need to see continued weakness with more leading stocks breaking down.
I think the next couple of days will be critical for the bulls to turn this ship around. My timing signal is in CAUTIOUS MODE. It’s ok to buy a few stocks that have had significant pullbacks like SOHU CPX, but I would be careful buying straight out momentum stocks. I would also be very defensive with any stocks you are currently long.
And for those watching the Silver trade…I like it on an intraday dip around $34.50, should that price target get hit.
