Two days of heavy selling, or distribution, and we’re calling this immediate environment favorable to bears.
We’ll hold our longer-term Buyer’s Caution bias unless we see more heavy selling combined with a collapse in leadership, which would make us Bears. Sell volume drying up would indicate bears losing their grip on the wheel. Though odds are good we’ll see the major indexes pullback to the 50-day averages. The market is too extended for a Buyer’s Edge bias to come into play.
Let’s stay objective. We don’t ‘want’ to see anything happen. All we ‘want’ is to react with good decisions to whatever the market throws our way. Hoping, in this game, is for losers.