Markets had a seesaw day Tuesday, just before Wednesdays shortened session. It started up almost .5%, then was down by about that same margin, until about 3 pm when a small rally left the Nasdaq and S&P 500 basically UNCH. The S&P 500’s 50 day SMA is becoming pesky resistance, stopping its advance right there both Monday and Tuesday. The Nasdaq conversely met support at its 50 day SMA today. Volatility will be the name of the game, according to the consensus for the rest of the year, but in a holiday shortened week even more so. Most concerning here has been the lack of quality breakouts occurring. With their absence, a market rally could prove fragile. Many names are setting up and poised, but to front run and purchase, without price confirmation is foolhardy. As many of you know, the SDS is one of my favorite and decent indicators of whether a downtrend is now in place. Its narrative is that the rally that transpired in the first half of 2013, is weakening and as long as the ETF remains above a close of 40, its best to listen to what the story is conveying.
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