There have been multiple stalling days, possibly 3-4, on the Nasdaq Composite around the 2800 level. The market wasn’t able to punch through this level. This potential scenario was discussed in last week’s MarketSmith webinar.

Also, the Nasdaq was re-testing the previous high of 2840; however, it has stalled out around the 2800 level (6 failed attempts to break through).

Proceed with extreme caution. Remember: defense and preservation of capital are always the priority.

Should the market resume its uptrend, we can always re-enter when the probabilities of success are more favorable.

Best Returns,

Scott O’Neil

President

MarketSmith, Incorporated