Not decisive. Unfortunately, despite the substantial early movement in the markets (DOW was down 132 points), they ended almost flat. So we are left with very little indication of future direction.

The DOW ended up closing down 7, the NASDAQ down 5, and the S&P down 3.

Looking at the chart for the DOW, there some positives, but also a negative. On the positive side, the DOW fell to the 20 day EMA (12,526), but then bounced off it nicely. This is usually a bullish sign. Additionally, the RSI is above 50, but below 70 (70 is considered over bought, and below 50 is considered weak). On the negative side, the MACD made the bearish crossover. However, we need to see confirmation of that tomorrow. See chart below:

At this point, I would still stay away from the market until we get a clearer signal. That could come as early as tomorrow. We shall see.

¶ 1/30/2012 04:10:00 PM