Sitting out for another day

Average investors should be cautious right now.

By Jim Van Meerten Jan 28, 2010 1:24PM
I just ran an hourly chart on the Value line Index, an arithmetic index of 1,700 stocks followed by Value Line. The index shows trading below its 20-, 50- and 100-day moving averages.

The index is trading at 2,235.80 with resistance at 2,267.55 and support at 2,214.83.

My advice is to trim stocks trading below their 50-day moving averages, but I'd not replace them until I see some support in the market.

Jim Van Meerten is an investor who writes on financial matters here and on Financial Tides. Please leave a comment below or email JimVanMeerten@gmail.com
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