TraderM31's  Instablog

  Interestingly, UTILITIES dropped in our indicator to the EXACT NEUTRAL VALUE (Equilibrium) today as well (ENERGY stocks in the DJ65 also moved lower).  At the same time, INDUSTRIALS ticked down once more but still remained long-term Supportive, even while at the same time TRANSPORTS maintained their same leading and Supportive reading.  GOLD & SILVER ETFS (our six) posted a slight, technical up tick today, but the actual price actions were all in pull back mode with the broad market.

        The bottom line result is that the readings generated of late remain as they were:  Overall the market is still long-term Supportive but in a short-term pullback that is producing a short-term top or a pause in the year-long Rally of the Bear Market.  A technical up tick in G&S further underscores the VOLATILITY reading in the current market as well.  We expect more consolidation and rotation as we head into the summer, which is typically a “pause” period for stocks (barring unusual influences).  SO…we are still waiting for the market to find a new short-term bottom and to turn the short-term momentum of the indices and their components long.  FEBRUARY LOWS seem to be the object of testing at the moment.

Disclosure: Short with SH S&P-500 and DOG DJ-30.