Except for a quick head fake higher just after the open the S&P 500 and Nasdaq stayed in the range they've defined over the past two days. I was as impressed with what the sellers did today as I was with the bulls' resolve the last two days. But we've got to see if they can break the bottom of these ranges.
The Nasdaq crossed 2075 and fell back for the third day in a row. It made a bearish engulfing pattern today and is very close to short-term overbought. I think the odds favor a breakdown here...
The S&P had another 200-day moving average battle again today. This time the bears won by pushing the index back under that line. On Balance Volume still looks ominous to me and stochastic just gave a sell signal.
The small caps got hit hardest today as the Russell 2000 lost 1.26%. It tagged its 50-day moving average and reversed lower to close under the 10-day moving average. It also looks like it's building a huge descending triangle. That's usually bearish... look out below? We'll see.
I've changed the Russell's short-term trend back to down since it's under the 10-day moving average, even if just barely.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Down | Lat | Lat |
| Intermediate | Down | Lat | Down |
| Short-term | Up | Up | Down(-) |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
