By Jeff Pierce

I know the bulls will say that we’re a stones throw away from new highs on the SPX and DJIA, but I remain of the opinion (or bias if you will) that the markets are in risk off mode as shown by the 2 charts below.

As long as we are on this side of the shaded area the markets are going to struggle moving higher. The move higher over the last 6 sessions is simply a technical bounce off the 200 moving average.



I thought we would keep selling off to the December support but the bulls stepped in and rallied us nearly all the way back to resistance. Now we should be close to a top that will be aggressively sold. There is still an outside chance we make a new intraday high to really suck in the masses, so be watching for that. Going forward we’ll likely see more selling with new multi-month lows or we’ll go up a little more and then sell off. Both scenarios see the markets going lower.



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