Well I guess I’m flip-flopping a slight bit. I’ve been viewing the market as range-bound for several weeks but last week I was focused on channels that had a slight downward bias. The indices have since pushed above those channels (in unimpressive fashion) but have not taken out the June highs. Until they can rise above those highs I have to go back to looking at lateral ranges. That change doesn’t make a whole lot of difference to how I’m trading though. I still want to short/sell near the top (June highs) of the range and but near the bottom (July lows). Although with the indices back above their 50-day moving averages I’m less enthusiastic about playing the short side than I was over the last three months.
The trend table looks a lot better than it did last week but I still see the market as range-bound.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Up | Up | Down |
| Intermediate | Up | Up | Up |
| Short-term | Up | Up | Up |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
*** I’m simply using the indices’ relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.
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