Video Stock Market Technical Analysis Review 8/20/07

Buyers stepped up in the markets again today but their resolve wasn’t strong enough to push that average back above the widely watched 200 day MA (now at 145.54). The SPY is also finding sellers at the 61.8% retracement of the August 8 high to August 16 low. The diminishing volume of the last two days suggests that buyers are losing interest in stocks at these levels and that leaves the market vulnerable to more downside. The primary trend remains lower, intermediate term trend is turning neutral and short term trend is higher. In other words, there is no clear direction in the overall market and that means it is best to go slow in regards to the market and instead focus on the low risk individual stock setups.