The SPX declined 13.23 points yesterday to close at 1202.45. TOT daily traders took a 10 point scalping loss on an unleveraged single unit.
The super long term perspective for the stock market remains bearish. However, both the long and short term models remain bullish.
On yesterday’s hotline, I said, “In the absence of unexpected news, today should see the market trade in a fairly narrow range.” However, there was a lot of unexpected news, most of it negative. Applied Materials and Intel both issued quite negative news reports, and Morgan Stanley downgraded Cisco. As a result, NASDAQ got hit hard, and the S&P followed suit.
Today looks like a tug of war around the 1200 level, with internal components of the daily model battling it out as well. Some of those components are quite bullish; yet others are equally bearish. At this time, the market is a tossup for the day, and we will remain on the sidelines.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 6435.75 cumulative SPX points compared to a gain of 743.52 points in the index itself over the same period.
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