Anyway, the market doesn't show any real strong signs of reversing the downward vector it has been on, but it just feels like we may get a little move back up. After that, I think we continue down for a little while longer. This uptrend has been forming an upward channel, and we would need to pull back a significant amount to make it "look right." Also, the Fibonacci retracement of the "fiscal cliff rally" (the one on 2 Jan) is not at a significant level.. it needs to move lower. Worth mentioning is a bearish divergence on the DJIA daily chart RSI. I haven't seen anyone highlighting it, but I've noticed it.
Below is a continuation of the Heikin Ashi candles I've been highlighting the last few posts. We are seeing the larger candles I predicted in yesterday's post, but the lower wick of the last candle is not creating a lower low. This is indicative of a minor momentum change. It doesn't really signal anything significant yet as far as a reversal of the downtrend.
So, the bottom line is that I think there may be a small up move tomorrow, but I don't think the short term pullback is complete.
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