Cautiousness...

Market closed negative today pretty much exactly how I expected it to. As I mentioned in Monday's report as well as yesterday's report to paid subscribers. As I mentioned, failing at this level once again can be catastrophic for the market. This is compounded by the fact that the SP-500 actually failed to meet the high of November, forming a declining peaks formation. Declining peaks signify declining short term confidence in the market making a new high and given that the market has struggled at this level for the most part of this year, each failure around this level opens up the possibility of a deeper correction. Like I mentioned to paid subscribers yesterday...

"With the new high resistance level and all kinds of uncertainty surrounding this Friday's jobs report, I don't see how anyone can be committed confidently at this level in either direction. This continues to be a market for extremely short term  trading the kind we did with BABA today, taking a 10.7% profit in just 4 trading days. Not bad with the uncertainty raging around in the market. (Check out our Master's Stock Options Picks service now!)"

 I won't be surprised to see tomorrow turning out to be a positive day given the uncertainty around this area as there are still plenty of reasons to be bullish as well as bearish. The bulls and bears will fight around this area, giving and taking lost ground from day to day before eventually one side run out of steam.

Market Crash Timer: ORANGE

For now, the market remains in short term bull trend within an intermediate and primary neutral trend.