CONTINUED WEAKNESS

I think that not only describes the market, but also my current condition after being hit with the flu this week. I won't be writing much tonight. I just wanted to get something posted because I do see some weakness in this latest sell off. It started with the Alcoa, Intel, and Goldman Sachs earnings. They all had huge quarters, but the stocks ended up selling off after they gapped up. The divergences are showing up again on the RSI, MACD, and CCI. There was a big reversal today as we were up about 80 points before we sold off in the last two hours to close down 92...that's a 172 point reversal! The volume was higher than normal which causes me to think there will be more to come tomorrow. If you want to hang on to some hope, we are sitting at the support of the 10 day MA and the previous high (9/23/09 high). This could act as support. You should probably abandon that hope (at least temporarily) if we open the day any lower than today's close. I'm not saying to go short the market. For now, we will treat this like the other pull backs...as another buying opportunity when the pull back is complete. That is unless we start to see signals of the uptrend breaking down. It is probably best to go to cash and wait for the correction to complete. I'm not saying to just bail on all current positions...I could be wrong and we could snap back tomorrow...but you should at least make sure you have defined your stops.