The bulls tried to make a rebound, but worries continued to bug them. It closed with merely a 4-point gain. The markets are still very uncertain. There are mixed reports about the market direction from here. Some believe the market wouldn’t stay down for long while others are already preparing for the worst. In my opinion, we are already in the bear market, just waiting for more to come. I say this because all the long- and short-term charts are already in the bearish territory. Any bullish move can only be considered a rebound in the bearish market.

The Dow is chart has formed a Doji. This is a sign of indecisiveness. The technical traders are anticipating a rebound but the fundamental investors are worried about the future of the market. These mixed sentiments are holding the market still. As a technical trader, I prefer a mild rebound to an uninterrupting fall. The break can give us a better risk/reward odd to enter the market. Otherwise, I will hold on to my cash.

If the market holds on to current level, this is also a good sign. The longer it stays here, the more likely it is to be considered a rebound. All we need is just a couple more days. Meanwhile, if you can any stock that has not made any big drop at this time, you may also think about shorting them upon any break of support level. One such stock I am still watching is Apple (AAPL).

DJIA Daily Chart

 All I can say about S&P is watching. I still hold the same comment as that of yesterday.

 SPX Daily Chart

 
The Nasdaq is playing catch up. The chart is bearish now and has just broken it new minor support, looking forward to reaching the new major support level. This explains why Apple is a good candidate for short play. Apple is major stock listed on Nasdaq and influences the index.

NDX Daily Chart

STOCKS TO WATCH:

Apple - bearish breakout

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