No bullish trend trades until we "get the red out"

Our complete market analysis is here



Negatives:

• The Bull:Bear ratio languishes below 1 at one of the lowest levels of the year
  
• Price is below both the short and long term Chaikin Trend Lines
  
• The short term trend is falling and the long term trend has flattened.

Positives:

• The market is oversold, and Friday’s bounce could follow through over the next few trading days.  There was substantial trading volume during the past two reversal days. 

Our Take:   With only 85 bullish/very bullish rated stocks compared to 108 bearish/very bullish rated equities in the S&P 500, the caution flag remains unfurled.   We will not initiate any intermediate term trend trades until market conditions return to bullish and our dashboard goes green.  We'll opt instead to trade directionally at support and resistance with short term, risk defined option bets.