It looks like the 200-day moving average is winning the battle of the irresistible force meeting the immovable object.

Last week, we wrote that it is more likely that the DJIA will correct based on what the indicators are telling us.  True enough, the index followed our expectations because every rise it had the past week had a weak volume accompanying it.

The 50MA has already crossed above the 200MA however it is already moot & academic after the DJIA has corrected from that point.  The 100MA should hold as support but that is not a certainty.

Because of last week’s performance, the MACD also weakened where it is now giving us a bearish look.  There are no indications yet that the index will be rebounding anytime soon.

We said that it was a time to flee, now it’s a time to be prudent and wait out the storm.

Recomendation: Stay liquid
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