Despite that violent reversal this morning, the buyers were able to support the market throughout the afternoon. There was one last burst of buying in an attempt to get the Dow to close above 8,521, its March high. That attempt ultimately failed. On the positive side, the NASDAQ closed at a new high for 2003, and the S&P is just shy of its 2003 high. However, the indices closed in the lower half of their daily ranges. That action created spinning top patterns on the daily charts. That pattern shows a tug-of-war between the buyers and sellers. That kind of stalemate/confusion is a warning of a reversal. Another reason for my continued cautiousness is that the indices were repelled by their upper Bollinger Bands today. So I'm still expecting a dip, at which point I'll start looking for some stocks to buy. In the mean time, I'm still short a couple of stocks which I'll look to get out of on the impending dip.
An up day, but...
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