Video Update ~ What are Individual Stocks telling us about the Market?

Today we look at various stocks to see more justficiation that we could be topping in the markets. We look at today’s action on the SPY, and how we made a newer low and then consolidated for most of the day only to find more selling pressure at the end of the day. Tomorrow can be another push lower simply because the market wants to form a H&S formation, and the head needs to completely form (i.e. move to 978-980 level on the SPX), before the right shoulder can form. That said, one day of consolidation is not out of the question yet. Overall, you can’t be fully bearish until the market breaks the wedge support found around the 960 level but ascending. Today we took profits on most of our shorts including JPM, as we see a possible push higher on some of the stocks as they form their respective H&S. We look at GLD, which we got stopped out of, since it broke it’s triangle formation to the upside and that might be another sign of fear entering the market. If GLD was an inflation hedge, the market would have been up when GLD was up, but it’s down. We also look athe XLF, STEC, RIMM and AAPL.