The market had a change of character today. Lately the indices have been trading the same direction as the dollar but today they went in opposite directions. Logic might dictate that the broader market *should have been* down with oil popping to a new high today. But what's logic got to do with anything, especially in the short term...
We had some good example of past resistance turning into support today on the indices today. An early selloff turned into a buying opportunity right around last week's breakout points. All of the indices look ready to test their 200-day moving averages, led by the Dow which actually traversed its 200 DMA today. I expect the bears to really put up a fight at those important moving averages so the next several sessions could be quite interesting.
No changes
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Primary | Down | Down | Down |
| Intermediate | Up | Up | Up |
| Short-term | Up | 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.
I might add that many of the commodity related equities have reversed to the upside, or continued to the upside. So much for the "bubble" bursting.
#1 RIO took out its high
#2 FCX is headed back to $120
#3 FDG took out its high
#4 DBC took out its high
#5 POT filled its gap and reversed back towards its recent highs.