Securities Research Services

Friday, August 08, 2008

Let's Be Careful Out There

The near term trend closed out the week with a bullish bias. Nevertheless, there are reasons to exercise continued caution here. The SPY closed right at its 50-day average and near term sentiment is reaching the overly bullish area.

These reasons for caution do not mean that the market is going to reverse here but they do mean that the market still needs to prove itself. Friday’s volume gives us no clues as to what to expect next week either.

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