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A Traders Market?

Don't get caught up in the day to day market movement.  The overall trend remains in the corrective mode (bearish) that it's been in for the last several weeks.  Support benchmarks that would signal the likely return to a bear market seem to be holding, but pessimism and concerns remain.

A traders market? Some would say yes, with the volatility and predictable run at the end of the session, usually the opposite from where it started.  I say predictable with the utmost care, especially short-term since the emotional state of the investment community fluctuates quickly and wildly on any hint or rumor of a recovery or not.

Overall, the trend, however, remains downward.  Market sentiment via options volume and activity sides with the Bears, but you have to imagine that the positive data and events will eventually awaken the Bulls. 

Events to consider that is currently driving sentiment resides mostly overseas.  Today Bernanke stated the EU debt issue may have a "modest" impact on the US economy, but that the FEDs are ready to react to any negatives as a result.  The Bernanke comment contradicts Geithners statement a couple of weeks ago when he stated that the EU Debt issue would not impact the US economy.

Summary:  Stick to the trend, it hasn't changed.  Sentiment remains bearish, but don't expect an accelerated downtrend, at least for now.  Watch the support benchmarks and be ready.






Disclosure: No positions