Major averages started lower yesterday then managed to finish near breakeven on mixed volume. Based on primary and secondary indicators, both the bulls and the bears can make compelling cases as to whether the current somewhat choppy sideways move will reconcile to the upside or the downside.
Major averages could easily fall a couple more percent to their respective 50-dma's, then find their footing as QE helps put a quick floor under each correction. On the other hand, each day this sideways move continues, the 50-dma continues its rise to catch up with the price. So with QE in full swing across many central banks, it would not be surprising to see a minimal correction before this longer term uptrend continues. We will continue to keep close watch on price/volume action of leading stocks as a key clue.
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