The bulls refused to give way to the bears on the second day after the Friday’s crash. But the both bulls and bears scored even. We have stalemate. Now, what this means is we just have wait for another day for hint for the next trading day. The point here is to buy into the bear market if the markets continue its bearish trend. If the market reverses, we do nothing. Yes, nothing.

This is because both the Dow and S&P are still bearish. There is no reason to fight the trend. Furthermore, I don’t think there is going to be a reversal so soon. Please check yesterday’s update for chart details. There is no difference in today’s chart and yesterday’s. I hold similar view as before.

Overall, the financial markets are in tatters. The crude oil factor is weighing heavily on the markets. The turbulent crude oil price does not just cause financial markets chaos but may also push the US economy – possibly the world economy – into recession. This in turn will bring about more negative chain effect to all other markets. Hence, I do not see the bulls have strong case under this circumstance.

As for the Nasdaq, it looks pretty precarious at this time. Perhaps it is influenced by the Dow and S&P. Traders for the Nasdaq stocks, too, are jittery. We need to see further action of the Nasdaq before making further comment. Meanwhile, stay put.

STOCKS TO WATCH:
AAPL – bearish breakout

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