The Wednesday Update of the Navigate the Stock Market System

SUMMARY OF NTSM INDICATORS:

As of today’s close, our 4-areas of market analysis present the following picture:

SENTIMENT:  Neutral. %-bulls indicator is 49% as of yesterday.  This is a middle of the road value for sentiment. (Sentiment is a reverse indicator; a high %-bulls indicator is bearish for the market and vice versa.) 

PRICE: Neutral.  The Price analysis indicator improved since last week but it is still in neutral territory.

VOLUME: Sell.  More volume has been going to the downside, but this indicator could switch over to a Buy if we had a strong day or two.

VIX:  Neutral.  Our VIX indicator is neutral.  The indicator has been falling for a week and that is good news for the bulls.  Also, the VIX dropped below 20 today and some think that is an important number.  The 2-corrections in 2010 and this one started when the VIX got above 20.

SUMMARY: The overall Navigate the Stock Market analysis was NEUTRAL today, and that makes 3-days with HOLD as our overall outcome.  (See the page How to Use the NTSM System).

We could see Buy soon…or not….I am expecting a significant down-turn tomorrow based on recent market internals and futures are currently down about ½% 

 

I closed my hedging (short) position because the correction hasn’t shown much strength and I didn’t want to lose on the trade.  I still think we will test the low at 1256, but that is not certain, especially since volume has been low. 

 

I am still conservatively positioned with only 30% invested in stocks.