It was a decent day for the bulls with the S&P regaining about 2/3 of yesterday's losses. Those gains came on increasing volume so the bulls have to like the volume action. We had similar action on the Dow and Russell 2000 but the Nasdaq reversed mid-day to close barely changed on the day. None of the aforementioned indices have moved very far over the last 3 sessions. They seem to be waiting for some big news to decide which way they will break from their ranges.
Here's the Nasdaq chart. It's showing oversold stochastic and made a bullish inverted hammer candlestick today.
1430 has some kind of magnetic pull on the S&P 500...
The Russell is clearly range-bound. Chop, chop...
These short-term trends are getting whipsawed especially on the Russell...
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Up | Up | Up |
| Intermediate | Down | Up | Lat(+) |
| Short-term | Down | Up(+) | Lat(+) |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
Hey Mike!
What is the difference between an inverted hammer
and a hammer - (and humpty dumpty) - the hang man
and does the color of the bar it belongs to - change any of the meaning? Oh? and if it is at the top of the run or the bottom of the slide.
I'm sure you don't have time for this - you could send me to a site that has it written.
Thanks - hope things are going well....
paul
Mike,
I appreciate you doing the dirty work on the tech analysis. I just wanted to let you know that I reference your posts for any kind of chart reading of the indices (http://optionjungle.blogspot.com/2007/01/market-technicals-via-trader-mike_23.html).
Keep up the great work.
Terence
Paul,
An inverted hammer has the shadow (wick) at the top and it has to be after a downtrend. It's not as bullish as a hammer. A candlestick with he same shape as the inverted hammer which occurs after an uptrend is called a shooting star.
Terence -- thanks!