Why I’m Still Cautious About This Market


Yesterday's big rally came as quite a surprise to just about everyone I talked to.

It's pretty funny how the market likes to confuse as many traders as it can.

Yesterday we still had plenty of warning signs to keep us from getting back in.

1) The market couldn't regain the 50 day moving average and stalled out just below.

2) If the bulls wanted to negate that nasty down day Friday, they needed to get into Friday's gap, which they couldn't.

3) Small caps remained much weaker on their bounce attempt, showing beta wasn't as good of a place to be.

All this being said, I am still waiting for SPY to get into the $211-ish range.

It got very close on Friday, and I am still holding out for that.