The bulls moved the market needle north yesterday but not much was accomplished.
The major indexes closed above the first layer of resistance but remain trapped between their 50-day and 200-day Moving Averages (MA’s). The bulls seem to be getting the most licks in but the bears are doing more damage with fewer punches.
Wednesday’s rally looked tired to us and was merely a back test from Monday’s selloff but the Wall Street pro and the talking heads loved the action. We still have to respect the close because charts can change but we said yesterday we see trouble brewing. The charts we drew-up this morning show exactly how this market is playing out so make sure you check them by going to the Members Area where they are posted.
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