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Monday, March 29, 2010

Resilience

The market stumbled slightly last week, as short-term overbought technicals collided with major resistance levels to wake the bears and bring about a couple of sessions of distribution. A pullback or correction after the recent run-up in stocks would certainly be reasonable, yet dip-buying has continued to define the current environment. While there have been some signs of fatigue and hiccups in market breadth readings, this is also often seen during consolidation periods and can be misleading. It's important to protect gains, but to also recognize that until we see more definitive indications that the baton has been passed, the bulls remain in control and working with the prevailing trend has remained the most profitable strategy.


Trade well.

-- Brinkley
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