Thursday, February 21, 2013

Panic

Traders are nervous here

Today's market action continued the selloff that started yesterday until the early afternoon when a strong bullish impulse tried to reverse the trend.  Interestingly, the bullish march was stopped dead in its tracks during the last 15 minutes of trading.  That may have been produced by traders who were itching for a upward move to get out of their long positions.

I've turned on the "yellow light" for two reasons.  1) the top already happened, 2) some folks would be tempted to buy on this weakness.  I'm not buying any long positions because I think there is still more downside to be seen before the RumWave produces a "buy" signal.

Today's scores:

Notice in the daily scores (above) that the RumWave score is in the low double digits and the "score total" color is dark green.  This is an indicator that the market has moved quickly to the downside and a bounce is not out of the question before we continue lower.

GOOD LUCK TOMORROW!

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