Video Stock Market Review 8/21/07

The markets showed gains today, but once again the volume was lighter and that tells us to continue to be very suspicious of the gains. The S&P 500 closed below the 200 day MA for the eighth straight session today and it also failed to break past the 61.8% retracement level of the drop fro 8/8 to 8/16. The market is at a critical juncture and with the primary trend lower, odds do not favor a continued move higher. Odds do not favor does not mean it cannot happen however, if the SPY can get above 146.00 and hold there for more than a half hour or so we could see a nice little short squeeze develop. Continue to trade very defensively.