Timing Is Tough

spx_weekly

Mostly flat price-action on the major indexes for Wednesday.

Because volume wasn’t any higher than yesterday’s for the Dow 30, S&P 500 and Nasdaq we’re not going to read to much into it.

What has technicians on alert is the gap left on the S&P when it opened higher a couple weeks ago.

Statistically, those gaps are almost always filled at some point, which means a sell-off erasing recent gains becomes imminent.

But timing such things is tough.

And we’re not pure technicians anyway.

Over time it’s the our understanding that stocks move in the direction of their earnings and price and volume reveal the true trend.

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