A Sell-off Day In The Stock Market

Unfortunately markets could not keep the gains made last week. MA50 obviously provided enough resistance to reverse indices on the short term bases. However, action in many leading stocks still looks pretty promising as they are trading near all time highs above any resistance. A test of August lows should provide enough time for these stocks to complete there bases. After all, most of them look pretty extended right now and cannot be safely bought. Tuesday's buy signal was maybe a little bit too fast. I should've wait for confirmation, but the behavior of liquid glamours is often more telling than day-to-day general market noise. Anyway, in anticipation of short term reversal my market model is neutral again. For the next week or two I will be closely monitoring if leaders that broke out will be able to build buyable bases. Also, my watch list of top stocks should extend to at least double of its today's size.