The major market indexes suffered a sharp distribution day yesterday as volume ballooned and the S&P 500 failed in what was de another bull trap breakout that sucked in unwary investors. The S&P 500 was able to find support along its 50-day moving average, while the NASDAQ remains trapped between its 50-day and 200-day moving averages. The put-call volume ratio, meanwhile, closed at 1.02. High readings can foretell market bottoms but since this is only a secondary indicator, its reliability can be questioned. In our view the long side of this market continues to carry significant risk and so investors should consider their actions carefully. This is not the time to take aggressive action on the long side, if at all. MDM came close to switching out of its buy signal yesterday and remains on close watch.
MLR - PMP 5/16/14
| Published: | 16 May 2014 13:04 ET |
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