After two days rising, we are yet again in this precarious position, at the high of the day, both DOW and SP 500 has touched their 20 day MA respectively, it backed off quickly, and a seeming strong rally fizzed by the end, NASDAQ even reverse to be down.
There are times that an uplifing market beget more questions, and todays is one of them. Is this a bear trap? nobody really knows, but one thing seems for sure that the market still lack the conviction and the jittery traders abound.
The commodities get crashed today, I have not find time to search what is the reason behind this, however, given their rapid ascendence, some profit taking are expected. In my humble opinion, the area still offers better opportunity in light of supply and demand inbalance.
It is the time to be vigilent. There is no doubt that the major trend of the market is down. So, a couple of up sessions should not make us complacent, if we can continue to make gains for the rest of the week, a short term rebound is in the order, otherwise, this is still a "sell to the rally" market
