MLR - PMP 8/6/14

Published : August 6 2014 at 9:53 ET

Major averages fell once again yesterday on higher volume. The number of distribution days continues to stack up and all major averages are either under their respective 50-day moving average or 200-day moving average. The put-call ratio also spiked above 1.0 once again which has typically been the level at which the market finds a floor. But should major averages head lower, this will be another clue that a deeper correction may be in store.

Future are trading lower as Russian President Vladimir Putin said he has ordered his government to prepare retaliatory measures against U.S. and European sanctions imposed on Russia last week, as the Kremlin stepped up pressure on Ukraine.

Keep your stops tight if you still are holding onto any long positions. And if you're short any stocks, keep a watchful eye on those that fall into logical support levels. When the market finds its floor which, since January 2013, has been generally on the shallower side, stocks that have dropped can rebound quickly.

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