...and back come the bears. 

Yesterday's headline said, "Score one for the bulls."  Well yesterday the bears said, "We're not dead yet!" 

Oil jumped well over $1 a barrel again and the market finally said, "No mas!"  The indices were up earlier in the day but the bulls eventually gave in to the pressure of all of the negative market influences I mentioned yesterday.  Oil being the major fear factor right now.  Another negative was that the volume picked up during the sell off compared to the rallies of the two prior days.

The S&P 500 has pulled toward the bottom of the recent trading range.  The question of course is will we break out of this little consolidation, or will we break out in one direction or the other?


                                  Chart provided courtesy of www.decisionpoint.com 

Unless you are new to this site, you know that I am expecting another push down.  My concern has been whether the pullback will be quick and steep like 1994, or a slow grind down as we saw in July 2004.  I am seeing some evidence that it could be quick but I won't talk about it today.  Someone remind me tomorrow to show you the ARMS index 10-day moving average.  It's actually getting close to a buy signal.  But things can get worse before that happens.

I got off to a late start today so I'm going to give you a break and end it early.  I'm waiting this trading range out hoping we get that push down so I can get back in the market.  This G fund can be a wonderful safe haven but the sooner the market gives us an opportunity to get back in stocks, the better.

That's all for today.  Currently 100% G fund.  Until next time...