Securities Research Services

Tuesday, December 04, 2007

Downtrends Resume

Yesterday we noted that the longer term trend in the Nasdaq sector was still up and that shorting the broader market was not a good idea. Nevertheless, buying the broader market is not a good idea here either.

Meanwhile, we are seeing downtrends in the weakest sectors showing strong signs of exhaustion after last week's bounce. Technical conditions are ripe for a continuation of the downtrends in retail, banking, transportation, and housing.

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