The market tripped a little yesterday but, as has been the case lately, the bulls put up a fight after the early sell off, and the losses ended up being moderate.
On the horizon is the Fed’s decision on interest rates, which is due out on Wednesday. While no changes are expected, uneasiness nevertheless prevails. With the economy being as weak as it is, I can’t see any justification for higher rates.
Part of the uneasiness could also be the lofty levels the markets have reached. Today, the Dow Theory, the oldest timing service in the country, chimed in with a buy signal. I want to caution you, because buy signals via the Dow Theory tend to be generated very late in the cycle while sell signals often occur after sharp market corrections.
You can read more about the Dow Theory in “Dow sending Buy signals.”