For Wednesday, November 28, 2012, We Recommend Against Investing

Technical Comment:

The S&P 500 declined 0.5% on volume above Monday but below the 30 day moving average.  If the S&P 500 declines about 22 points on Wednesday (-1.6%) our forecast could change to an uncertain trend.

Subjective Comment:

The market decline on Tuesday made a second straight day of strong-volume down-days.  Volume was still below the average volume, but our pattern detection software still identified Tuesday’s drop as part of a developing pattern of market weakness.  It will take more such days before a complete pattern with predictive value will form.  We still advise against investing through the end of the year.  Our recommendations regarding price inflation and bond investing also remains unchanged.

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