It was a relatively quiet day today as the indices dropped a little in lighter volume. The most critical technical item I see is the S&P 500 testing its July trendline. Buyers have been stepping up on these trendline tests since autumn and I fully expect them to give it another try right in this area. But one of these times the obvious trendline bounce will fail…

Here’s the S&P chart showing the aforementioned trendline:

The Nasdaq bounced off of its 50-day moving average today…

The Russell 2000 dropped the least today…

Google is approaching a technically important area — the top of the October gap. It’s very oversold so it seems like a bounce in this area is the most likely scenario.

Trend Table

The Russel’s short term trend is now down since it closed below its 10-day moving average

Trend Nasdaq S&P 500 Russell 2000
Primary Up Up Up
Intermediate Up Up Up
Short-term Down Down Down(-)

(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend