Summary: Continue to maintain a LONG/HOLD position.
1/27/2014 – Another down day for the market with the DOW being down 41 points or (-0.26%). The NASDAQ was down 44.5 points or (-1.08%) as it played catch up closing the divergence gap mentioned here last week.
Overall, the short term trend is down, while the long term picture remains bullish. We did identify December 31st, 2013 as the major turning point and the beginning of the bear market that should take us into the 2017 lows. Yet, we must first wait for a technical confirmation before reversing our long/hold position and going short.
Short term, the market could experience further weakness, before reversing and closing before mentioned gaps in the 16,400 range.
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