Saturday, June 14, 2014

Market Trend Model Shows Weakness

The Market Trend Model is showing weakness in the S&P 500.  This index will show a trend change should it trade below Thursday's low of 1,925.78.  At the same time, the Russell 2000 has run into resistance as it remains trapped in the right side of a head & shoulders chart pattern.

After a 9-week low volume rally in large cap stocks, it would appear likely some profit taking occurs as the rising geopolitical risks in both the Ukraine and the Middle East give market participants an excuse to sell stocks.