Last Thursday reversal to the down side thwarted the bulls attempt to take the market to new highs. The market had priced in a rate cut by the fed in the first half of 2007. The realization that this may not happen until the second half of the year (if at all in 2007) caused the market to sell off Thursday and Friday.

Thursday sell off was a distribution day. Which makes three in four weeks. We removed this indicator from the “upside” of the Bull Bear Review.

Read the Bull Bear Review (PDF) >>>

Posted by Michael Chapman at 12:38 PM PST