Fallen and Can’t Get Up?

Qqqq_1605Too early to tell for sure, since we have overtones of new year’s profit taking overlapping the other forces that are currently in play, but Monday’s reversal and engulfing candle on volume combined with a fall below the 50-day moving average and subsequent failure to — yet — rally back above it is as textbook a warning signal as you’re ever gonna get.  Couple that with the items outlined in my 1/2/05 Technical Update and it’s good to have some cash on the sidelines until this thing plays out.  Cheers!