We got a pretty good oversold bounce today. Both the Nasdaq and NYSE Composite Indices were up 1.9%. While the bulls will happily take today's gains they can't claim complete victory given today's decrease in volume. Still, this day was almost the opposite of the last five sessions. I think every industry index was up today as opposed to two days last week in which they all were down. (I'm seeing bad data for the BKX, StockCharts shows it was down and Telechart shows that it didn't move at all today. But clearly it was up since all of its component stocks were up today.) I look at today as just the "rubber band" snapping back after being stretched so far. The true test will come as the indices test resistance just overhead.
Today's bounce allowed the S&P to close above its lower Bollinger Band for the first time in a week. Bulls will want to see the mid-week highs from last week taken out to hopefully start a series of higher highs. I'm not holding my breath for that though. I'm watching for resistance just above 1400.
The Nasdaq is also still in oversold territory. 2400 looks like an important level for it to break through.
The small caps had the best day today with a 2.48% move for the Russell 2000.
No changes since the indices are still under their 10-day moving averages.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Up | Up | Up |
| Intermediate | Down | Down | Down |
| Short-term | Down | Down | Down |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
Stochs can hang out along the bottom when in a down trend. The previous touches occurred in an uptrend and I think that trend was broken on 2-27.
Hey Mike, I appreciate your market commentary everyday, you do great work.
One thing, a while back I asked if you had any information about how you prepare your taxes, especially in relation to the volume of trades you make. Does your broker keep good track of that information, do you have them done professionally, software? Do you know of any trader bloggers who have made a similar post recently?