From: Fallondpicks.com

Another day of listless trading as markets prepared for their next move. Large caps were again hardest hit; the Dow shedding another 41 points on heavier volume (= technical distribution); the S&P closed right on support of 1,294 and the 20-day MA. Unlike the Dow, the S&P losses occurred on low volume. The tech averages escaped relative unscathed; the NASDAQ traded down a point on light volume as technicals continued to improve; the NASDAQ 100 created a bearish engulfing pattern on light volume (but at overbought slow stochastics, so this needs to be watched), just above near term support. The semiconductor index completed its bounce to the 20-day MA and is back looking at the 200-day MA for future support. The Russell 2000 inched up a couple of points, maintaining its leadership role. The markets remained aligned in bullish mode with small caps leading techs, leading large caps. Tech secondary indicators [$NASI, $NAA50 and $BPCOMPQ] powered to new reaction highs which should bode well in the near term, although I remain skeptical about this being a rally of substance; if putting money to work, don't overexpose yourself. In my Collective2 portfolio I have added a couple of stocks to replace recent executed trades.

Newsletter updates (to subscribe; purchase monthly or discounted 6-month and annual memberships in right-hand-margin):

Target hit: MERX gapped up above its Target price. The February 10th play closed for a 57% gain.

Stop hit: KKD was a stop hit for the long trade from March 8th. The Subscriber trade from March 30th is still in play. The long play closed for a 15% gain.

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