The day started off looking like a rout for the bulls but changed at about 12:30 when sellers stepped in. The S&P and Nasdaq both got pushed back under their 50-day moving averages by the selling. (I hope…) The market can’t stay in this trading range forever and it’s looking like a retest of the bottom of the range is right around the corner. I see some mixed signals in the charts — bullish stochastic indicators but bearish candlesticks today and resistance for 50-day moving averages. So while I can honestly say that my outlook at this juncture is about as neutral as neutral can be, if forced to choose a side, I’d be looking to play the short side. Luckily I don’t have to choose a side. I’ll gladly do less until this trading range is resolved.
