I have to admit I am a little surprised by today’s action. Due to Google’s glowing results, oversold conditions and the the historically postive results for October 19th (since Black Monday), my expectations for today leaned to the bullish side.
With about 2 1/2 hours left before the close, it looks like we might get our second distribution day in two weeks. If this happens, it will definately put a damper on my bullish bias.
To add fuel to the fire, the S&P 500 has dipped below it’s 20 day moving average with authority. Next stop is the 50 day and the September breakout bar. To remain bullish, the market will have to maintain this level next week. If the market can close off today’s lows, that will also be a good sign for bulls.
I have received a number of e-mails asking me what I am doing with my long positions. I’m holding steady and honoring my stops. If I get stopped out, it won’t kill me. Considering the insane gains many of us have made during the past couple of months, a few small losses will be little more than an annoyance.