Morning Market Update for October 03, 2013

The nature of the market conditions remain the same, the Dow continues to sell off while the S&P 500 appears to be supporting at the 50 day moving average, is also resisting at the 8ema. This currently makes the market action still in a sideways mode. The NASDAQ is still above the 8ema although its trajectory is relatively flat. The prognosis remains the same, stay in strong long positions, the short in good weak patterns. These market conditions clearly illustrate that prices moved based upon investor sentiment. Currently it can be assumed that investor sentiment has no strong bullish outlook for the market in general. This is why analyzing specific stocks and sectors becomes very important. Have a great trading day.