The good news for today was that there was not the feared massive sell-off that was suggested in the pre-market, and in the end the Dow even finished on the plus side. Also, we have seen the market fight off several attempts to send it below its support around the January/March lows. That's another good sign.
Our momentum indicators got pushed down of course. But looking under the covers I see that the market looks to me to be somewhat oversold. If it can shake the credit blues, along with the growing evidence that a bottom is in place, we may see a very nice pop before too long. Now, don't go and bet on that in this environment, because you never know whether another shoe is going to drop. We need to get some nice confirmation of any move upward before doing that.
So the advice is to remain neutral until something definitive happens one way or the other, with my hunch being that it will be to the long side.
Check out our Top 25 lists and our TradeWinds Black Box results for today.
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