We had a light volume, narrow range day today -- almost like this was a holiday week. ;-) But seriously, I was really surprised that the market held up so well given how bad the financial sector was today. Banks were hitting my bearish scan all day long. $BKX ended the day down 1.5% and broke through its 200-day moving average a trendline which goes back to the March 2003 low. Perhaps bears were scared to short this dull market today.
All the major indices are building triangles (coiling) similar to what I've drawn on the Nasdaq chart below. I suspect the market will just continue to chop around between the sides of the triangle for the rest of this holiday shortened week. As always, time will tell...
The S&P 500 closed just below its 50-day moving average on relatively light volume. Today's range was within the ranges of the previous three sessions.
The Russell crept back above 800.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Up | Up | Up |
| Intermediate | Down | Down | Up |
| Short-term | Down | Down | Lat(+) |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
