Bulls have the baton, BEAR-ly

The market managed to close decently, in positive territory, after shaking off a rather nasty Cliff earlier in the day. Internets were weak but the Semiconductors and Small Caps were strong, which is very encouraging. Not only did the Bulls shake off the attempted assassination from the Bears but key support levels on the NASDAQ held. This basing and testing action in the NASDAQ is also a key ingredient and prerequisite for a bounce.

It is important to note that while the NASDAQ did not close near our 2150 hoped for target, it did manage to hurdle over the 2140 level. Furthermore, Bulls were definitely more prevalent than Bears throughout the afternoon. The fact that the Bears had the Bulls against the ropes earlier today but squandered their opportunity is another feather in the cap for the Bovines.

Thanks to the Small Cap strength, breadth was solid at 17 advancers to 12 decliners on the NASDAQ and 2 advancers to 1 decliner on the NYSE. Volume was light but heavier than Friday, which had flat action.

As we have discussed throughout the day we have moved our posture from Bearish to neutral. Enough indicators surfaced today that led us to this action. We HAVE NOT converted ourselves into Bulls. Simply put, we are choosing to position ourselves for an overdue short-term bounce. Admittedly the lack of Mojo from the Bulls today, is keeping us nervous with our neutral position.

We see the Bullish tendencies of the market but they don't have the feel of powerful institutions. Rather, we are visualizing a class of fourth graders dumping their piggy banks into the market. Good for a pop, but not much else.

If You Held A Taser To Our Head: We will play an expected bounce to between 2165 - 2170, but will keep our finger on the sell button if the internals degrade.

-Have a good night-

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