Quick Market Update, May 22nd 2008

Posted by Blain Reinkensmeyer
May 22, 2008 at 2:53 pm

Regular readers should recall my post from this past Sunday, Proceed The Market With Caution. The red flags are now waving, and I am 100% cash as of yesterday.

For short term momentum traders like myself flowing with the overall market trend is very important. This may only be a short term correction but nonetheless is not worth ignoring to find out.

The Nasdaq chart below may look confusing but basically the resistance areas I posted on Sunday did actually hold and with the distribution day to close outside of the recent ascending channel, the next support area should be around the 2400 level.