Given our positions or lack thereof, why should we complain? Because trading range markets are a pain since they can suck you in and then spit you out with a series of small losses. But that’s where we may be headed. Perhaps as we noted two weeks ago to subscribers the bear was due for a rest and subsequent action has proven that as correct. If this is just a waypoint in a bear market then we’ll find out soon enough.

Volume was above average with most coming on the downside as breadth was decidedly negative. [You can spot Yahoo Finance’s math problem right?]

























































































































Just when you thought it safe to go in the water more trouble rains on bulls. The bad news from AIG shouldn’t surprise anyone, nor should unemployment claims, consumer credit card debt problems or poor retail sales and outlooks.

Again, those with big dough on trading desks and hedge funds know how to move nimbly. One minute they’re long and pounding the table to buy and the next short.

No trend follower likes trading range markets. They offer nothing but a series of small losses [if you’re disciplined] and ultimately frustration. But, we may just be at that waypoint where bears will reassert themselves.

Have a pleasant weekend.

Disclaimer: Among other issues the ETF Digest maintains long or short positions in: XLV, RXL, IEF, PST, TLT, TBT, DBC, DEE, USO and RSX.