Market Outlook
Levels did not matter. Market violated the levels very quickly. Its not a sign of good health. But nobody is certain. Is it simply a pullback? A millon dollar question. As a fact, short term market movement is very difficult to predict even by market wizards. However, market was relatively tame and many market leaders suffered a high volume selloff. This is the second time when a distribution day is observed. That does not gives us conclusion that these distribution days is enough to change the overall trend in stock market. Often when a stock suffers a violent down day, the low will act as a resistance level as worried market participannts begin to sell on any bounces back into the sell off day's price range. It is a different story when the weakness is attributed to an individual stock due to individual story. Now the various market indexes are showing weakness. Now leaders of major indexes begin to show signs of weakness. This character of market perturbes market player raising question on "canary in the coal mine", offering a warning that the market is getting tired. Again to say, recent weakness does not conclude us that necessarily the start of a new downtrend and there is a good chance for each of the market leader to absorb this selling pressure by way of sideways consolidation. Lets see which leaders enter a period of sideways consolidation early and gathering enough energy to challange the highs set last month.