Thursday’s markets made a surprised move, defying all the known signs of an intra-day crash shown on Wednesday. Remember that we had an avalanche of market amidst high volume, plus negative news affirming the strong bad sentiment at a time of overbought condition. Nevertheless, this unexpected move did not produce any action or window to take position in any market. I have suggested a few stocks to watch but none of them gave us any confirming signal of heavy selling to get us into the market.

Never mind. Let’s focus back on the markets on Thursday. The Dow headed higher, closing in to the 13150 resistance. At this time, let me change that resistance now to 13100 due to lower 50-day moving average occurred in the past few days. Again, it is still my conviction that the Dow should take a correction any time from here. Given the overbought situation, it is not a good time to go long anyway should the Dow makes any further bullish move. In addition, more bad news have surfaced just hours ago. Staying sideline should be the words of the day.

DJIA Daily Chart

The Nasdaq had a breakout of 50-day moving average of its weekly chart. This can be a sign for extended bullish trending as well as an indicator for the Dow and S&P to follow. However, the RSI remains below 60-line. The trend is not yet confirmed. Let’s wait it over. Friday’s market should be an interesting market. Watch it later.

Nasdaq Daily Chart

STOCKS TO WATCH:
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