It Starts At Last...

Even though the S&P500 and the Dow did close positive yesterday, it was actually a very bearish day and one which should at last set that profit taking I have been talking about over the past 2 weeks into motion.

In my last report, I mentioned that the Nasdaq moving higher is something I won't take lightly as it has the tendency to lead the Dow and the S&P500, or basically the market. However, the Nasdaq gave in to reality yesterday and made its strongest single day negative close of the month. Even though the Dow and the S&P500 did close higher, they were so marginally higher and spent so much of the day in negative territory that I won't be too quick to call that a true positive day. In fact, bond yields were also lower as investors return to the safety of bonds.

All in all, yesterday was to me a very bearish day and one which should set the start of the kind of profit taking phase I have spoke of since 2 weeks ago.

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