This Leg of the Trip is Over, Let's Gas Up

I reported yesterday morning to my Google Group that I thought the markets may retract a bit for the next few days, and that seems to be bearing out (no pun intended).

If you're a chartist, check out the MACD on any of the major indexes, as it is shifting direction downward, this is the supply/demand trend in transition. This will aid in resetting the oscillators like the RSI and Stokes, and ratchet up the pessimism a bit.

AIG is going to help this transition along by reporting much worse than expected news, probably stopping the financials resurgence dead in their tracks. How does a company raise dividends when they know their write downs are exploding? On the flip side, retail is rising against the tide, interesting.

The Naz should be the benefactor of good support in the 2390-2400 range. I think we'll see some more selling today and into Monday, this will be a weight on AAPL going higher. So I would consider trimming positions on strength. That doesn't mean take everything off the table.

If you want to preserve capital, then preserve capital, if you are more of a risk player or much longer term and can weather the dips, then do that. The fact is, that the Bears have the upper hand on the Bulls right now, and expect them to exercise their will. I'm personally holding my AAPL position, if there's an intra-day move towards resistance, which appears to be at 188, then you might consider locking in profits.