Taking a look at the broader market:
Despite multiple accumulation days on the major indexes, we remain in no bias mode due to counter bearish evidence in place.
All major indexes are above their 50-day averages.
Leadership is of defensive character, with Consumer Staples, Banking, Healthcare, Pharmaceuticals and Energy making for an attractive refuge from a beaten broader market over the past month.
Technology and Transportation have yet to reverse their downward channel trends, and is our bearish leadership.
Given the month of August is notorious for institutional money sidelined due to fund managers on vacation – we feel the best course of action is to sit tight.
There are a number of stocks ready to go in our Setups section, but unless they breakout it’s only further reason to remain in cash.