Friday, July 23, 2010

Steve Cook -- The Morning Call - July 23

For the first time in months, volume was actually comparable to that of down days and breadth was strong. Our internal indicator improved. The only negative was the VIX which was down but remained above a critical support level.
Bottom line: I think the odds are that the Market is re-setting itself into a trading range probably defined by 9645-10725, 1009-1149. However, I would like to see some follow through--something that neither the bulls nor the bears have been able to produce in the last months. Further assuming that the new trading range’s boundaries are 9645-10725, 1009-1149 then there is more risk than reward in investing at current price levels.
Original content Bob DeMarco, All American Investor
 blog it