A Battle Rages

Before running through our scans we were of the opinion that it would be necessary to put on a short hedge or two. After getting a clearer view of the internal character of the market that is better seen when viewing individual stock charts we have determined that there is no clear direction in this market despite the seemingly strong reversal on Tuesday. Stocks are not set up to run at this point but that does not mean that they are set to break down. We saw very few reliable short or long set ups and considering the fact that the broader market is so mixed, we can be fairly confident that set ups that do look promising are in fact unreliable. Bears controlled the day today. They have not gained control of the market yet. There is one near certainty that we can uncover at this point: those who try and enter the fray as both sides battle for control are going to come away with losses. This is not an either/or situation. This is a lose/lose situation until one or the other side gains control.