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Still Undecided

March 26, 2021 – My call of market volatility a few weeks ago remain “in play”. As noted in the chart of the NASDAQ Composite Index below, bars are red, trend channel (purple parallel lines) are down and the rest of the indicators are basically lightly Bearish in the short term. Prices remain between Resistance (13620) and Support (12985).

click on chart to enlarge

The index bounced right off of the Support level on Thursday, which is good, but volume remains light. There just doesn’t seem like anyone is willing to call this minor correction over; demand is light for stocks.

We may just have to wait until the end of the first quarter to find out if investors are ready to move markets higher . . . or not. But as I mentioned before, a pause to refresh is not a bad thing at all. I have raised some Cash since my accounts are in IRA’s and trading costs are very low. No need to take notable losses while things shake out one way or the other. I’ll be watching those price levels and signs that money is beginning to flow back. Until then Cash is OK with me.

The Short Term Sector Strength table is shown below –

Of note is the general strength in the “low growth / “safe” sectors, though Semiconductors are picking up. This may be a good time for patience & observation . . . . I’m thinking.

Have a good week and continue to Take Care. ……………… Tom ……………….

Price chart by MetaStock; pie chart & table by http://www.HighGrowthStock.com. Used with permission.

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