Phil's Stock Market Blog

There was a pulse of Climax Lows on Monday the 5th which lead to a rally for a few days, as the stock indexes ran up and touched the highs set several weeks ago. But the volume was weak. On Thursday the volume increased, but the upward price progress was not great, indicating distribution.

October has traditionally been a weak month. Given the top several weeks ago, and the lackluster rally that followed, and the churning action on Thursday, we are taking a very cautious stance.