June 27, 2011

Short-term: 2 green, 2 yellow
Intermediate-term: 3 yellow, 1 red
Composite: Neutral but deteriorating

The market is at a crossroads. Just above a rising 200 day average, below a falling 50 day average. My indicators show that the pullback to date hasn’t been long enough, deep enough, or with enough volume to indicate that a healthy bull market can resume. Technically, when the market breaks out of its current wedge, it will make a large continuation move in that direction. The wedge will resolve itself within two weeks or so.

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