By Jeff Pierce

This isn’t going to be all doom and gloom, but there does seem to be something wrong with the markets lately. The bounce on Wednesday was met with forceful selling on Thursday and today we undercut recent lows. Basically this tells me that we’re going to see more downside before another bounce will occur.  With my timing signals down for the Nasdaq and Djia, the only way I would attempt to buy new long positions is on a very oversold position. The Tues/Wed bounce removed some of the downside momentum, so we need to see more selling to regain that pressure and generate enough fear in the markets to trigger a buying opportunity.

On the flipside if you wanted to open fresh short positions we need to see a bounce because as we saw on Wednesday that violent reactions to the upside are possible.

Short term targets:

  • Nasdaq: 3800
  • Djia: 15400 – 15700

djia

 

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