Tradewindsfor Monday February 18th

Friday was a very nice consolidation day for the market. Our slow and modertate momentum indicators continued an upward slope, while our fast momentum moderated its downward slope. Interestingly, the last three Friday's the market has bounced off its lows of the day in the second half of the session. This tells me that fear of holding over the weekend lest some bad news about things like another bank having trouble has abated. 

Our long term measure of momentum as shown in the slow momentum chart, is nearing neutral or calm waters. So caution is still required, but if the market continues to consolidate I think you can feel comfortable picking up your favorite underpriced stock, or picking one from our Top 25 lists. Also, if you see the market start to make a strong long move, you can feel confident jumping on it.