TURNING POINT?

The markets sold off in the last couple of hours after moving higher at the open. When selling pressure increases at the end of the trading day, we need to look at the possibility that there could be continued downside movement the following day. It wasn't just the sell off that concerned me, it was where the money was going. We saw gold stocks make big moves up on huge volume. This could be that safety move I mentioned last week. By the way...I do expect some success stories from those gold stock recommendations I made last week...it took a few more days that I expected, but the moves today really paid off. The VIX moved up after gapping down at the market open. These are all signs that there could be more selling. The uptrend is still in tact so I am not calling for an all out downtrend yet...but there could be at least another brief pullback. Look for confirmation before entering any bullish (or bearish for that matter) trades. I still like the energy stocks but they might pull back a bit before moving higher. Keep and eye on them and put them in a watchlist. For a possible put option pattern...look at NFLX. We had a nice move down last week when I pointed out this bearish pattern. It has since rallied up over the last few days. It is now hitting the previous support level. This previous support level might now act as resistance. It is also near the underside of the 50 day moving average and the 50 day moving average is starting to move sideways. The candlestick pattern today looks like a reversal pattern. Look to see if it starts to move down...particularly if the whole market is moving downward. Confirmation is important because we could easily break back above resistance and move higher. I will look to add some other patterns tonight when I run my scans.