My crystal ball was working well this morning. The action today played out almost exactly as I thought it might. We got a mid-day reversal which started a little while before the Philly Fed report and really picked up steam once the report was released. The indices also made bearish engulfing patterns. I'm glad I waited for that report to hit before making any trades. I wasn't really feeling the action early this morning so I figured I should just sit & wait for that noon report. I took my one and only trade at 12:01 when I shorted the QQQQ.
I didn't make a whole lot off of that trade, just 1.25R or 0.9375%, but I'll take it.
Below is the Nasdaq chart. There's not much for the bulls to be worried about yet. If they can't defend the 200-day moving average then sellers might kick it up a notch.
The S&P looks like it could be putting in a double top. But it's got a long way to fall before that pattern would be confirmed -- it would have to break the June low. So I don't think that potential top is really actionable unless one just wanted to take a stab at it now and hope it slides that far. Me, I'll just be watching that trendline for now...
No changes.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Lat | Up | Lat |
| Intermediate | Up | Up | Up |
| Short-term | Up | Up | Up |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
