Monday, March 16, 2009

Stock Market Commentary: Profit Taking

No surprise to see bulls taking money off the table after the gains in the market. Volume climbed to register a distribution day with some heavy trading in the Dow and S&P. Looking for some follow through downside tomorrow, the inverse doji lending to the bearish tone.

On a relative scale, large caps have begun to outperform tech stocks; both of which are outperforming small caps. not the most bullish of environments. The intermediate time frame picture improved with a MACD trigger 'buy' in the Bullish Percents with all key sentiment indicators above their bullish 5-day EMA triggers.

Buy the dips.

Dr. Declan Fallon, Senior Market Technician, the free stock alerts, market alerts and stock charts website