Sunday, August 3, 2014

Bears Poised to Growl

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The Nasdaq appears to be at a critical juncture as market internals have turned decidedly negative.  Thursday's market swoon placed this index into severely oversold levels on shorter time frames and a sharp one to three day bounce may be likely as the Nasdaq attempts to find support at its 10-week ema.  However longer time frames suggest the stock market is weakening from overbought levels and an end of summer correction may be looming.