CMF has turned negative on all 3 indices....

TAPE has been on a holding pattern and has not done much since 2nd week of July, it has gone nowhere. How will this 7 week of sideways action will resolve.......we have to look @ other clues to determine where we go from here.

CMF has turned negative on DOW, S&P 500 and Nasdaq fir the first time in a long time. This simply means that money is leaving this market.

IS this a reflection of summer vacation time or smart money is not so sure about direction of this market, thus in no hurry to put new money in the market.

Technically, S&P 500 and Nasdaq are below 50 DMA, again not a sign of healthy market, so no hurry to make a decision to trade or invest.

This sideways market may continue until the week after labor day, so 2 weeks of inaction.

DOW is the only index which is above 50 DMA, which gives some comfort, that all is not weak.

RSI ranges from 46.32 in S&P 500, 46.79 in Nasdaq to 50.61 in Dow.....trading near lower end of their range.

I do not think that we are going to race towards 200 DMA, but in next 2 weeks, sector rotation continues, out of technology and into base metals......

After 2 weeks we may start to do bargain hunting in technology @ low low level.

SO...it is clear summer holiday needs to be enjoyed until everyone is back @ work.

Next 2 weeks exposure can remain low.....until strong stocks are bargain again.

SO......do your homework and keep monitoring potential buys......

Good luck with your own take and comfort level.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed