Video Technical Analysis Stock Market Review 8/23/07

The markets continue to send mixed messages across different timeframes and that is why I continue to believe this environment is best for shorter term trading. After 4 up days it is impressive that today’s pullback was as shallow as it was and the rising 5 day moving averages in the market also give is reason for short term optimism. The rejection fo the IWM at the 200 day MA and the declining 50 day MA in the SPY is reason for continued concern on the longer term timeframe though. The more I look at these markets the more convinced I am that tomorrow is a great day to not trade.