11-09-2011 Market Indicator Update

The market fell very far today, November 9, 2011. I have further reduced my holdings in stock funds, and am going to keep more holdings in cash now given the escalating situation in Europe (apparent risk of Italy default).

Indicator #2 remains in neutral territory, but is very close to a “DOWN” – with a market close below S&P 500 1216 we’ll likely move Indicator #2 to “DOWN”.

The market is again at a point where a short term bounce up is likely (as indicated by very short term indicators that I do not publish), but the news in Europe may be the dominant force in the market.