Bulls Trap?

8/4/08

Recently, I have called market has formed intermediate bottom. However, major markets has performed badly or not bullish enough to carry forward since. Now, S&P is closed in red 3 days in a row and barely touching the uptrend line started from 7/15/08. Unless tomorrow there is a surprise happened after FOMC meeting. The result of FOMC meeting is going to be no surprise, no rate up or down, keep what was going to be same as last meeting. As often, the final market movement mostly would be more predictive after few days of tomorrow. Technically, Bullish percent index, S&P bullish percent index are both showing "sell signal". Therefore, be caution on the way up if tomorrow the market bounce.