There are always two sides to every story and I would be amiss if I did not give the NASDAQ the attention that it deserves.
While I remain intermediate and long term bearish at this point, we simply cannot just look the other way as far as the strength the NASDAQ has been showing over the intermediate term.
The uptrend channel has been held in tact and continues to call for higher prices, although we did have a quick double test of the lower channel line in a very short period of time, which is typically the first sign of a market losing its upward momentum. Regardless of this, there is no doubt that the NASDAQ remains in a bullish pattern and also that the 2591 level is going to be key to the OTC stocks potentially breaking away from the bear market.
Until that time however, with all of the other negatives I am seeing, I cannot in all clarity begin an allocation any higher into equities then the very conservative stance I currently have.
A close above 2591 will be very bullish and may in fact bring the broader market along for the ride, but we have to make it to that level first.
I remain very defensive on stocks and continue to swing in the direction of a new leg lower in a continuing bear market.