Game Of Chickens

The bears appear to have moved to the sideline after they sold the market down to a key support level in January. If the bulls cannot retake those support levels that were broken, then the bears will come back in and take this market down with vigorous. Don’t be fooled into thinking this market will trade sideway.

The key level that could determine whether the bulls or the bears will take control is highlighted in the following charts. Click on them to view an enlarge image and to read the commentary for the DJIA, SP500, Nasdaq 100, and the Russell 2000. Until this game of chickens between the bulls and bears is resolved, I will not be a buyer or a seller.

DJIA:



SPX:



NDX:



RUT: