S&P Watch: Time for Real Caution Smita Sadana Jul 02, 2009 4:37 pm |
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In my opinion, the recent subtle shifts in the banking index, housing sector, and recent break in the metals, oil, and agricultural chemicals are worthy of attention.
Click here to enlarge.
Today, despite being a low-volume day, is turning out to be a terrible day in terms of breadth and the inability of the market to muster any bounce after this morning's drop. Even though such days might be followed by a retaliatory bounce, it might be time to step up caution, as I have been sharing in the Bull Market Timer Weekend Updates. (This weekend, I'm looking at similarities and differences between now and 2003, which was the start of a new bull market.)
I will reiterate: I'm bringing safety back.
And before I take my leave, here’s another visual to ponder: The chart of the Dow Industrials is on the verge of closing below all its key moving averages (20, 50, and 200).

Click here to enlarge.
Have a great holiday!
Smita Sadana offers in-depth research on historical bear markets and provides you with 10 indicators she's found that together confirm the beginning of a new bull market. Learn them today so you know when it's safe to invest again. Bull Market Timer - 7 day money back guarantee.
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