Securities Research Services

Tuesday, August 28, 2007

Rally Came on Decreasing Volume

Yesterday we wrote: "Selling short at these levels does not seem offer a great deal of potential."

We need to back track on that statement today.

Yesterday's market breadth was hugely bearish and the number of stocks tagging their 50-day averages from below on rapidly decreasing volume is a strong warning sign that the market's sell off that started late last month is threatening to reassert itself.

We may be second-guessing ourselves here, but the technical conditions of this market are clear. They are signaling a downturn from near current levels.

No comments: