The market dived on lower volume today, with the three major indexes closing down –2%. As mentioned in last nights post, the S&P 500 had revisited its broken support line, which often happens before resuming the move lower.

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There was a trigger from the Watchlist. I didn’t post this chart last night, it just didn’t look healthy, but I kept NNBR on the Watchlist. It offered a small opportunity for a profitable day trade, but market action kept me out of this one.

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No doubt about it, the market looks like it wants to go much lower, and staying in cash is a good idea. If the market should bounce, I am keeping a short list of trade ideas, but these will be day trades, and only if they trigger on heavy volume. Otherwise, I will be passing on these.

Trade Ideas for 08/26/08:

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Good luck and good trading!