Impulse Indicators Fired - Short-Term Buy Signal

Daily Market Snapshot

The Bulls Assert Themselves,
But DMS is Still Less than 50% Green.
We now need a follow through day.

Trendline Analysis

Chart View

S&P 1500 Composite Index

Nice Bounce Off the Bottom

Market Direction Model

           IMPULSE INDICATORS                         MDM                      

Buy Side Impulse Indicators Fired
(Lots of Blue Kahunas)

The Woody Indicator

(Volatility Indicator $VIX)



Market volatility dropped dramatically.
We are back in the Safe Zone.



The market remains in an intermediate downtrend. However the short-term trend has reversed to the upside. The market is being bouyed by hopes that the Federal Reserve Chariman, Ben Bernankie, will open the door for QE-3 (quantitative easing - code for print more money) during his congressional testimony Tuesday morning.

As I indicated in recent blog posts, we are positioned primarily in high dividend paying defensive issues. If the market has some follow-through Tuesday morning, I will add some more aggressive positions to the mix.

The market has been very oversold so I anticipated this bounce. Up-side follow through is essential to qualify this move as something more than a short-covering rally.

This blog post does not constitute an offer of investment advice. This blog is only provided for educational purposes. Please read the Important Blog Disclosure posted in the right channel bar.