MDM - Model switches to Neutral
Today's final volume tallies adjusted from being higher than yesterday's volume right at the close to being lower than yesterday's volume a short time later, thus today was not a follow through day.
As we wrote in the prior report, with all the governmental manipulation that serves to prop the market as it fights against the flow of negative sovereign debt news out of Europe and China's tightening policies, it is not surprising that this market is screwy and volatile with all the gap-up, gap-down opens we have seen over the past couple of weeks. Thus, the model has switched from a sell signal to a neutral signal.
We would advise selling your inverse ETFs (or covering your ETF shorts) and moving to cash for the time being.
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