So the streak of wins on the 1st of every month for bulls came to a grinding halt today as the market gapped to the upside then sold off heavily the rest of the day on higher than average volume.
Put simply, cash remains king.
I went 100% cash on Feb 22nd and continue to find comfort on the sidelines. 2810 remains the magic number for me on the NASDAQ to start moving back long.
Looking ahead I am watching the 50 day moving averages closely and more importantly am looking to see if we make lower lows. This would occur if the NASDAQ trades below 2705. Also it should be noted that on the NASDAQ we have had three distribution days in a row without an accumulation day. This is by CANSLIM standards a sell signal.
For some tips on tracing in a market such as this I suggest reading my recent post on StockTradingToGo, 6 Great Tips for Investing in an Uncertain Market. Stay frosty out there 
.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Up | Up | Up |
| Intermediate | Up | Up | Up |
| Short-term | Down | (-) Down | (-) Down |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
*** I’m simply using the indices’ relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.
