Weekly commentary

The last two days has turned me from bullish to bearish. The selling during these two days was intense. Friday's Nasdaq volume was the heaviest since mid April. As you all know, I expected a rally coming out of the small bull flag formed from April. We were supposed to rally hard out the bullish pattern this week, instead we had hesitation and indecision actions that made me suspicious about its validation. When I heard over the phone that Dow was down 160 pts after I landed at LAX, I knew we had a bull trap. It now looks like the strong up leg we enjoyed from April through June is officially over. Cash is the king, and caution is recommended.