Well, we got a very convincing sell-the-news reaction to the Fed rate drop. The selling came on increasing volume and pushed the indices under some important moving averages. While that's a clear negative for the bulls, the indices have not made lower-lows. Unless the December 4th lows are broken it's tough for me to be an all-out bear right here. It is tempting though, especially with so much room until stochastic reaches oversold on the indices.
A bunch of downgrades today to go along with all the moving average breaches:
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Up | Lat(-) | Down |
| Intermediate | Down(-) | Down(-) | Down(-) |
| Short-term | Down(-) | Down(-) | Down(-) |
(+) 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.
Great summary of Dec 11 after Fed cut 25 basis pts and market react with disappointment. I was watching the market yesterday and very tempting to trade put option especially on GOOG and BIDU. At the end, I didn't because I am like Mike that I have yet to see the lower low...
Today, market rebounced upon open when Fed announced the joint effort with Bank of Canada, Bank of England and ECB to address liquidity pressures.