10/28/2009 - Market Update - Danger

The market has shown its ugly face over the past week, and even though this is a great buying opportunity, there are some developments today that suggests the uptrend may be coming to an end.

1.  Major indices have broken the 50 EMA.  Russell 2000 was hit the hardest.

 2.  VIX has exploded to the upside and held above the 50 EMA on a long white candlestick.

One should stay long until the downtrend is confirmed.  The moving averages are turning fast, so the market must rebound within the next couple of days in order for the uptrend to stay in tact.