After Market Report
The bearish case was strengthened once again today. After end of the month buying made it appear that bulls were gaining control the bears struck back hard today erasing a good portion of last week’s gains. There are some important divergences to keep in mind at this point. The S&P, while still trending up, has a very low breadth of participation. The semiconductors, which feigned a breakout last week, saw accumulation figures dropping as the price was rising. Today both of these sectors found serious resistance. The dog of the market lately, the NASDAQ, has once again bounced off the bottom of its 20-day average and a recovery above this level does not appear a near term likelihood
One last thing, before everyone gets overly bearish, remember this market has not established a strong trend in some time. The indices have trended higher for the most part, but participation has been weak at best. If the market is indeed headed slated to begin trending lower there is likely to be more surprises from the bull camp as well. It is important to monitor trades closely locking in profits often