Choppy Action Today

The market is off to a slow start but the advance decline is as negative and that gives us reason to think the market may pull back deeper. The market has experienced a very large rally over the last 3 1/2 weeks and a pullback to the 5 DMA would not be out of line here. We also have to keep in mind that a failure of yesterday’s move could be setting up a larger bull trap. The markets remain comfortable above the VWAP since this uptrend began so there is no reason to look at short side trades as scalps for now.