Market Comment 09/25/2012

Market Snapshot

The market could break either way from here.

Chart View

S&P 1500 Composite Index

The market closed in the middle of the Bollinger Bands, right at the 20 Day Moving Average.
The Market Snapshot pie chart paints the percentage of stocks  above the
20 DMA green and the percentage of stocks below the 20 DMA red.
Remember Green is good and red is bad.

Market Direction Model

The market has been drifting lower for more than a week now.
The market rose earlier in the day only to sell off strongly in the last hour of the trading  day.

Today's pullback was partly due to comments by Philadelphia Federal Reserve President Charles Plosser. He said that the Fed’s recently announced third round of quantitative easing is not likely to do much to benefit growth or employment.

Basically, the market had become very overbought and a pullback is to be expected. This is all part of the normal ebb and flow of the market. Intermediate term I remain bullish, but short term the market is bearish.