Take one pullback in the morning, add a little drama from China, then Europe and see me on Wednesday.
We have broken down thru the 20 EMA and are headed to the 50 SMA. While many would consider this a negative downturn, I'm still thinking healthy pullback.
Yes, I know it was a big day, and the largest single day drop for the year, but I have been saying that we needed a pullback. For Day Trading or Swing Trading for just a 2-4 day period, the tend is down. Take advantage. But for those looking for the longer trade, this breakdown is somewhat expected and just another warning to PAY ATTENTION! Watch your stops, your profit margins and close long positions when warrented. If price should CLOSE below the 50 SMA I will become bearish. But until then, the long term rally is still alive and kicking.
CURRENT MARKET TRENDS
Short Term (Daily Chart) – Down
Medium Term (3 day chart) – Down
Long Term (Weekly Chart) – UP
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