Obviously there was a lot of technical damage done on Friday. The market gave back all of Thursday's impressive rally and then some. We've been having a bit of a tug-of-war between large cap and small cap stocks. The small caps have been trying to pull the market higher and the large caps are weighing the market down. Right now the Dow looks ominous to me. One more day like Friday and it will be threatening to break to new 2008 lows.
The S&P 500 made a new 7 week low on a surge in volume.
Despite an almost 3% drop the Nasdaq has yet to break the June low. However, it is once again beneath its 200-day moving average.
The small caps are showing the least technical damage.
Lots of downgrades on Friday. Just like that we've swung from almost all 'ups' to a whole lot of 'downs'.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Down(-) | Down | Lat(-) |
| Intermediate | Up | Down(-) | Up |
| 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.
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