Is the market volatile enough for ya? We've certainly had some nutty moves over the last five sessions. The market looks very confused to me. You don't often see so many opposing wide range bars so close to each other. It's like we're seeing a tug-of-war between bulls & bears where the sides alternate taking days off. Bernanke helped the bear case today with a well timed hawkish remark in the afternoon.
Dare I repeat what I said last Tuesday evening -- that the market's look like they're headed for a retest of the May lows? Things certainly seem to be playing out that way. The indices broke their nice little uptrends today although the S&P and Nasdaq still haven't made significant lower-lows yet. Last week's lows should be key areas for those indices.
The Dow had its lowest close in almost 3 months today:
As for individual stocks, once again I'm seeing a ton of bearish setups, especially bearish engulfing patterns in oil and other commodity stocks. I'll be watching for follow-through on those this week.
Since all three indices broke their 10-day moving averages today I'm changing the short-term trends to 'down' across the board. However, given the chop I could just as easily call them 'lateral'. But there's no fun in that. :-)
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | LA | Up | Up |
| Intermediate | Down | Down | Down |
| Short-term | Down(-) | Down(-) | Down(-) |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
LA Indicates a Lateral trend
