For Wednesday February 27, 2013, We Recommend Against Investing

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Technical Comment:

The S&P 500 advanced 0.6% on Tuesday with volume above the 30 day moving average but below Monday’s volume.  The advance on Tuesday was not as strong as Monday’s decline.  The fact the volume on Tuesday was above average does not change the prevailing pattern because Tuesday’s volume was below Monday’s volume.  The technical pattern of strong-volume down-days combined with weak-volume up-days remains dominate and is a clear indication US markets are unlikely to continue to advance.  Tuesday’s advance on the S&P 500 index was not enough to reverse the trigger of our stop loss algorithm.  Should the S&P 500 advance about 6 points on Wednesday (+0.4%) then our automated forecast could change back to a growth trend.

Subjective Comment:

See our recent posts for subjective commentary.

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