Monday, August 10, 2009

Here are four indicators to watch for when rally may be over

Is the stock market's rally coming to an end?

Or is this week's churning action merely the pause that refreshes?

The difference between a top trader and the rest of us lies in how these questions are approached. Most of us are merely reactive, getting excited in the wake of any rally and becoming discouraged whenever the market declines -- even when it declines by as little as it did on Thursday, when the Dow Jones Industrial Average /quotes/comstock/10w!i:dji/delayed (INDU 9,370, +113.81, +1.23%) dropped by just 25 points. (more)

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