I think it's safe to say that the bulls reclaimed the upper hand today. They responded to what the Federal Reserve had to say by pushing the indices above many important technical levels. It will be interesting to see how the market acts as it gets into the gas left from the big drop on the morning of February 27th.
The Nasdaq confirmed a W-bottom yesterday by closing above the March 9th high. It got a nice follow-through today and took out its 50-day moving average. It's becoming short-term overbought as it approaches late February gap down.
I'm showing SPY instead of $SPX in order to show the February 27th gap. The S&P confirmed a W-bottom today and also closed above its 50-day moving average.
The Russell climbed back above 800 and its 50-day moving average. Like the Nasdaq, it confirmed its W-bottom yesterday.
The Dow is the only of these indices not to close above its 50-day moving average today but it did confirm its W-bottom.
I'm flipping all the intermediate-term trends to up due to the indices closing above their 50-day moving averages.
| 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
this caught many shorts naked! no doubt about it..
however, i have a nagging feeling that another sudden downwards draft is coming!
Mike, great recap man :d/
The gap is going to be interesting to watch to see if it gets filled. Personally I think some retracement is in store here, and I am not yet convinced the market has "turned the corner", I am sticking with a strong cash position!