Markets finished slightly lower Tuesday as late mini rally efforts stalled out. The Nasdaq actually closed UNCH and amazingly has finished the last 3 trading days all with a 3919 handle. It traded in less than a 20 handle range Tuesday, and bounced off the round 3900 both Monday and Tuesday. All 3 sessions have traded inside the range of last Thursdays bearish outside day when it fell 2%. Tight trade should be construed as bullish action? Or is it indicative of a tiring market? Volume did perk up today and distribution is becoming a bit more than bulls should feel comfortable with. Especially as readings over bullish money managers sits at 5 year highs. There are musings of bearish contrarian measures regarding the resurgence of the retail investor. Many believe when the “unsavvy” investor gets involved could spell trouble ahead. On the other hand stodgy groups like utilities are not acting all that well. They have been down the last four sessions. The 200 day is providing some support here however. GOOG, the tech giant who may have seen the writing on the wall exiting China recently, is trading just above the 1000 mark. It has formed a tight bull flag and finding support right at the large round number. Buy stop above 1031 to enter. PCLN the other to recently join the exclusive, yet very lonely, 1000 club found resistance right at the round 1100 figure. I love the round numbers.
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