No surprise to see the market drop today. Our short term indicators were stretched yesterday after a nice run of a few days. Don't go with all the headline nonsense about what Bernanke said or didn't say. The market lets off steam from time to time, whether its going up or down. Don't Ask Why.
Our slow or long term and moderate momentum indicators continued their march in favor of the bulls, undeterred by today down day. Our fast momentum indicator took a slight downturn, but that is healthy. The fast momentum needs to reload every now and then to push the other indicators higher.
We are now up to 43 out of 80 equities that I track with favorable winds or neutral. In our Top 25 lists those are the ones highlighted in green or white. Yes the prevailing wind is still in our face, but it is down to a strong gust. This is measured by our slow momentum chart (which is having trouble being published from my google spreadsheet). Once it rises above -5 we are in neutral or calm seas. Barring a significant turn around here we should reach that in the next few days.
I still see the market as improving and its time to start buying the dips - cautiously. Check out our Top 25 Longs for trading ideas.
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