Investors Should Sell or Wait It Out

Hold off on buying until non-confirmations have been resolved

By Sam Collins, InvestorPlace Chief Technical Analyst 

Nine weeks of opening-day losses came to an end on Monday. The Dow started strong and held for most of the day but gave back almost two-thirds of the gains in the last 20 minutes of trading. There was little in the way of economic or corporate news to propel it along, and it closed on lower-than-average volume and a lack of enthusiasm.

At Monday’s close, the Dow Jones Industrial Average was up 21 points at 13,118, the S&P 500 rose 3 points to 1,394, and the Nasdaq gained 22 points at 2,990. The NYSE traded 646 million shares and the Nasdaq crossed 297 million. Advancers edged out decliners by 1.6-to-1 on both exchanges. On Monday, the S&P 500 finally bested its June high and briefly broke the top of its bull channel. Sellers drove the index under the upper resistance line after hitting an intraday high of 1,400 even. 

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