Volatile enough for ya??? They say the market just vacillates between greed & fear and we've certainly seen that the last few sessions. Price gains were very impressive across the board but those gains came on declining volume. That makes me think this pop was more about sellers stepping aside than buyers bum-rushing the market. (Not to mention expiration games!) But who cares what I think? The true test will be if the bulls can break the steep downtrends we're in. The S&P is closing in on two important lines -- it's 200-day moving average and the November trendline.
The Naz has a bit more room before it reaches resistance at 2700:
One upgrade today since the Russell 200 closed on its 10-day moving average...
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Up | Lat | Down |
| Intermediate | Lat | Down | Down |
| Short-term | Down | Down | Lat(+) |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
*** I'm simply using the indices' relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.
If we do break these levels, it will happen either very, very quickly or with a gap-down in prices, below that level, so how do you prepare? The up-open today was a great opp to sell strength and re-short. Essentially, it is easier to place smart benchmarks with shorts on such a trade than to be long-and-wrong - since the market if it truly fails here will resolve so much faster going south. Good trading!