Tuesday, May 29, 2012

We are still in a wedging pattern

The General Market is still in its wedging pattern that we last saw on May 24th. This indicates the market continues to be in a correction mode. If the Market changes its pattern in the next few days we will change our opinion. As a student of the stock market we need to listen to what the market is telling us.
Weak buying which we are seeing so far does not set us up for a long term enduring rally. The market may go up from this point without indicating a change in general market conditions. The change in general market conditions will be indicated by a big breadth thrust in Market Breadth Ratios. At this point it looks like a counter trend rally or what we call a wedging pattern.

Here is a list of some stocks that have held up well during this correction:

ALGN
ALXN
BWLD
CMG
MNST
SWI
SXCI
WPI

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