GMI falls to 2; Up-trend in doubt; Remain very defensive


There is again a split in the market between the nonfinancial tech stocks in the QQQQ and the big cap industrial stocks, reflected in the Dow 30 and S&P500 indexes.   A similar split occurred in the 2008 decline, when financial stocks tanked. These indexes are in down-trends, even as the QQQQ remains in a short term up-trend.   But the QQQQ daily and weekly up-trends are now also   in danger of ending.   I am going largely to cash and setting stop losses very close to support.   We might get that head and shoulders top I have been discussing.   This is not the time to be brave.   Better to conserve cash and wait on the sidelines for signs of a real up-trend.

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