We appear to be back to the whipsawing in the general market that we saw in 2011, with the market unable to either convincingly make new highs or break down on Euro/economic concerns. As mentioned on numerous occasions, non trending, volatile market states are the worst market conditions for trend followers. This is where risk management comes to the fore, and why anybody who trades in the markets should consider this element before worrying about entry/exit rules.
Perhaps unsurprisingly, the FTSE and DAX indices have been weaker than the major US indices due to the ongoing Euro issues, and the FTSE and DAX are now showing a pattern of lower highs and lower lows (albeit with greatly increased volatility). I have shown the FTSE and the Dow below.
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