A quick thank you to the 100+ readers who filled out yesterday’s survey. There was a lot of fantastic feedback and I look forward to implementing some of your ideas. Thank you! The survey is still open if you have not yet filled it out which takes roughly 30 seconds. Also, I am going to try and post a Reader Q&A on Friday to answer some of your questions.
Another distribution day for the market but strong support was found to hopefully put an end to this short term correction. Considering the run we had leading into this week, a pull back like this is healthy at this time.
One trend to take note of is high power stocks which have posted strong earnings, gapped higher, and now have either started to retrace or have completely retraced their steps to fill these gap ranges. Leaders lead the market higher so hopefully this is not a sign of overall market weakness to come. Stocks that come to mind are TZOO, CMI, VMW, ACOM, PII, and GRA amongst others.
Last note today is that Silver is continuing to get crushed. Last update I almost included the 50 day moving average on my chart but opted against it thinking it’d be some time before this key support came into play. Well, I was way off as today we closed at this key support. A lot of this selling is being packed on by margin calls so once these die down (usually takes a few days), then we should see a healthy rebound session. Catching the bottom however is like trying to catch a falling knife. It is a game that starts fun, then ends horribly.
Stay frosty out there! 
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| 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.
