Not Completely Tilted

Monday’s light-volume selling tells us little at this juncture.

Our Sell Bias remains intact as we continue to be on alert for a bounce as the major indexes flirt with key levels.

We’re going to consider Friday’s low pivotal until taken out. What the Bulls really want to see now is a high-volume rally with at least one of the major indexes up about 2%.

We’ve been bearish for weeks as Distribution Days, technical breakdowns from key sectors and genuine concern over Europe’s situation have all given consistent red flags.

The longer this theme endures, the more we look for evidence it will ease or end.

While the majority of S&P 100 stocks continue to trade in breakdown mode, there’s a good number in key support areas with potential to trigger a broad market bounce.

Add relative strength leadership from the likes of Campbell Soup (CPB), Heinz (HNZ), Altria (MO) and Sara Lee (SLE) and it’s not all completely tilted out there.

As for our beloved Growth Stocks, they’re still poised and ready to breakout from sound technical bases. But as long as the dominant selling environment persists we’re not expecting much on this front.

Should we enter a longer-term correction, these Growth Stocks too will succumb to a deterioration of their technical picture – but we’re not there yet.

Stay tuned,

Dan

thegrowthstockreport.com

Leave a Reply

Your email address will not be published.