The stock market remains in a stance of “Uptrend Under Pressure”. With all this talk about March Madness an investor might have thought you were referring to the stock market. Over the past three weeks the market has moved back & forth between being under our proprietary first stage sell-signal, and then falling back into our 2nd stage sell-signal, which is where it stands today. While the market has generally been rising since the Feb 9th low, the rebound has been anything but straight up and has come with 4 new Distribution Days (professional selling) in the past 12 trading days. During this week the market has shown a bifurcated tendency. That’s a $5 SAT word that means divided into 2 parts, or basically a split personality. The Nasdaq & small cap stocks have rumbled ahead on higher volume and have taken out overhead resistance price levels, while the S&P 500 has struggled to rise on decreasing turnover and still remains under an important technical price level.
Tomorrow a potentially powerful catalyst, the Bureau of Labor Statistics employment situation report, will be announced before the markets 9:30am EST open. Investors reactions over the next several days to this report and the new Trump tariffs will likely push the market out of “yellow” (sideways) and into a new direction. It is possible that that within one week both sell-signals could be removed and the outlook be upgraded to a “green” light. The opposite, a “red” light, is possible too. With the “Uptrend Under Pressure” currently, investors should simply play “wait-and-see”. While the evening news can be provocative, the market’s own price & volume action gives wise investors all the information they need. Have a Triumphant day! ®