Broader Market Update 8-22-2014
Based on our research as forecasted just last week, the broader markets have now hit the first area of overhead resistance at or close to record highs. We now see two possible scenarios playing out show term with the end result being the same and that is another retest of the lower 200 day moving averages. From these levels at major resistance the broader market will either hold churn and claw slowly higher for the next 5 to 7 or just drop straight down from here more quickly for the retest. Either way 15-17 days from now the broader market averages should be closer or retesting the 200 day moving average. Because our research anticipated this this higher move off the 200 day over a week ago we sold or lightened up on all of our positions and sold into market rally strength. We’ll now avoid going long any stocks unless exceptionally noted and soon position ourselves in inverse ETF’s an attempt to profit when the broader markets again fall.