It was all about technology and small caps today. The Nasdaq and Russell were able to breakout of their trading ranges while the Dow and S&P 500 ended the day near the flatline. All those indices have overbought short-term stochastic readings but there's a lack of motivated sellers out there to relieve the overbought conditions. As far as swing trades, I certainly wouldn't be a seller right here but I'd like to see a bit of a pullback before putting new money to work.
The big move in Cisco helped the Nasdaq to break free of its consolidation. I'm watching for a retest of 2500, where it failed in mid January...
QQQQ actually had a better day than the Nasdaq on a percentage basis but its chart is much less impressive. Today's move put it right in a resistance zone.
The S&P 500 completed its fourth sideways session:
The small caps are looking really good now as the Russell walks up its upper Bollinger Band:
No changes
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Up | Up | Up |
| Intermediate | Up | Up | Up |
| Short-term | Up | Up | Up |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
Thanks for the insight Mike. I think there will be a pullback also, but can't say it will override the pre-existing uptrend. I opened a short on the QQQQ on Monday which I still think looks pretty good. You'll see when I close this short from my blog. Keep up the good work on your site !
maybe a short coming up on the R2K?
Once again, a down day brings out the Bear comments!
Keep 'em coming!
If the indices finish down half a percent or more, I predict double-digit comments posted today, Mike!!!
:d/
How was yesterday a down day?
Mike, although the comment from Cal was attached to the 2/7 blog entry, it was actually posted on 2/8, which (at last check) was looking like a down day for the indices in general.
Your blog almost always gets more comments posted on a down day - regardless of the thread they attach it to. Hence my prediction that if we go down 1/2% or more you'll get double-digits!