What This Market Is Facing Now


The market was oversold and ready for a bounce going into
today’s trading, and that is exactly what we got.



Unfortunately, the bounce came on lighter volume than
average and than yesterday. The Dow and
S&P 500 remain above their 200-day moving
averages, but the Nasdaq looks like it will have a major obstacle at its
200-day around 1,940 on the index.

^Next^


Cisco
(
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reported earnings after the bell that appears
to be a non-event as I type this column.  Company guidance may change that, but
overall we remain in a market that is facing institutional selling pressure.


This market bounce after the severe sell-off of the past
few weeks seems to be an opportunity to get out of long positions that are
sitting at losses or may provide a good shorting opportunity if you are
interested.


Internets

(
HHH |
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PowerRating)
still appear to be one of
the strongest tech groups while Semiconductors
(
SMH |
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PowerRating)
seem to be one of the weakest.



In poor markets such as this, it is best to wait for a
little accumulation to appear before wading back in. This is evidenced by
rallies on heavy volume, or above-average.

Until Thursday,

Tim
Truebenbach

timt@tradingmarkets.com