BBY bear signal

Best Buy Inc. (BBY), the tech and media big box store, is showing a psar bear signal today on the third day of decline.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
BBY $42.55

The macd and the sto are showing bearish signs. The pps remains in bull mode.

The bear signal comes in the midst of a year-long sideways trend. In the shorter term, it runs counter to an upward move that began Feb. 12.

The break came after earnings unsettled traders.

Upon the announcement pre-open on March 25, BBY gapped up by 7.6% and then declined sharply during the day by 8% high to low. Not the best of days for those who bought Best Buy. Since then the price has been hanging in the middle of that large range.

You are here:

• Reverse
• $44.79, +5.3%
• Now $42.55
• Reverse
• $40.54, -4.7%
• $39.13, -8%
• $36.28, -14.7%
• $35.01, -17.7%

The reversal levels to the downside are nicely spaced. However, the stock has shown itself to be prone to whipsaws on directional changes: Whipsaws of one day in February and four days in January.

This signal will be followed in the daily Watchlist, which is posted beginning around 2:45 p.m. Eastern. Look for it at www.timbovee.com.

Abbreviations:
psar - Parabolic Stop and Reverse
adx - Average Directional Index
pps - Person's Proprietary Signal
ma20 - 20-day moving average
macd - Moving Average Convergence-Divergence
mfi - Money Flow Index
sto - Fast Stochastic

About the glance: The colors indicate the state of each signal.

• trend: green for up, red for down, yellow for sideways
• adx: green for above 30-up, red for 20-down, yellow for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.