SHORT TERM: NEUTRAL
We took a good look at all four indices, the MMI, and the price trends, and we’re not liking what we’re seeing. Short term, we were fairly oversold two days ago and have not rallied. Intermediate term, we are very close to making price trend reversals in all four indices: The DOW is a certainty. Our Market Momentum Indicator appears on the verge of taking a steep decline over the next few days. With all these potential negatives on the horizon and the indices still within 1% – 2% of their highs. We feel it’s time to take some profits.
We’re going to neutral on the intermedate term for the next few days, or until the negatives get resolved. A complete update after the close.
INTERMEDIATE TERM: NEUTRAL
LONG TERM: BULLISH