Wednesday, August 05, 2009

Stock Market Commentary: First Distribution Day

It has been almost 4 weeks for some indices but today was the first significant sell off in the markets in a LONG time. The point loss was relatively mild and markets could have a string of days like today and not alter the intermediate bull trend. It will take a lot to initiate a new down trend so bears can only be thankful for the pause but nothing else.


Bulls will need more than one day of selling before they can get excited to buy. Any buying dip will take a number of weeks to play out.

As a sidenote, volatility is approaching rising support from 2006 but there is still a few points to lose (and for markets to gain) before it gets there.


Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.

 
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