For the second session in a row we got a rally based on "news" related to bond insurers. The gains were enough to push the S&P 500 through the top of its triangle but not enough to get it above the February highs. Clearing that peak is a must in order for the bulls to establish a pattern of higher-highs. The 1,400 area already had a lot of congestion (resistance) and now it's also got the 50-day moving average -- currently at 1,395 -- piling on.
Today's move had less impact on the Nasdaq chart. It's still within last week's range.
Ditto for the small caps.
We've got improvements in all the short-term trends today.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Down | Down | Down |
| Intermediate | Down | Down | Down |
| Short-term | Lat(+) | Up(+) | Up(+) |
(+) 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.
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