With all the economic data that was released today as well as a trading halt in AMBAC for news it wasn't surprising that today's session was a choppy one. The noon spike, which was a knee-jerk reaction to the AMBAC halt, stalled right around the bottoms of the triangles the indices just broke down from. I'll be keeping an eye on those lines to see if they continue to be resistance.
Trend Table
no changes
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Down | Down | 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.
check some of the charts over the last 12 months for similar action. breakout to the downside from a wedge and a small rally to the support line that becomes resistance and then more downside. and examples like this in John Murphy's book as well
There was an island reversal on the dow at the triangle resistance.
thats no triangle, thats a rectangle - support below 1325 since hi volume reversal mid-Jan.