Friday now appears to be a one-hit-wonder, as we were flat stopped on all positions this morning as the Navigator moved back into an hourly sell signal. The buy signal was short-lived, as they sometimes are. The market is now in a bearish tilt.
Naturally, things could still improve this morning, but we are now trading below the intermediate trend line on the S&P 500 in a third test of the trend and the fourth on the year. The NASDAQ 100 is worse, having arguably lost its intermediate trend as interest rates are climbing.
For now, we will stay in cash and do our best to identify the intermediate low that lies ahead.
Fed policy uncertainly is ruling the day in an otherwise lofty stock market.
A.F. Thornton