The market showed further weakness as the early rally failed at the end of the day. The rally did provide a possible bearish opportunity on the DIA and SPY. In the short term, we might rally a bit more before making another move down...possibly breaking back above the previous support at 920 (temporarily). This might make more sense because that rally might retrace that previous decline by about 38.2%. The other possibility is that we just drop from here. Either way, the outlook is more bearish. As you look at the charts, you will notice a lot of stocks have dropped below their 50 day moving average. Many of the stocks that I listed last week as having bullish trend potential have broken their support levels (including...in some cases...their 50 day moving average). In a few weeks, they might return to their uptrend...but for now, we might need to return them to the watchlist. The Market Trend signal now shows a "Mild Bear" condition. This is the site I use for my scans. To learn more, go to www.markettrendsignal.com and sign up for the free 30 day trial.
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