We had a big selloff today but it came on decreasing volume. The indices were short-term overbought so this could be looked at as a well-needed drop just to cool things off a bit.
Although the Nasdaq cleared its trendline yesterday it also made a shooting star-like candlestick. That turned out to be a good warning of sellers reasserting themselves. Now I want to see if the bulls can hold the recent minor low at 2250.
It's a similar story for the S&P 500, except that it's much closer to its minor low around 1,250.
The small caps actually broke their 50-day moving average yesterday but also gave a warning with that shooting star. I'm looking for support near 690...
Just one downgrade today...
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Down | Down | Down |
| Intermediate | Down | Down | Down |
| Short-term | Up | Lat(-) | 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 took a little QID home for the weekend, just a feeling but I think we could trade lower Monday as I do think the financials have some more air to exhale.
upside
Happy B'Day Mike,
Enjoy the day!
DJF
How do you pull up the stochastics on Bloomberg charts? every function is use comes up with much lower levels (ie. 50)
Thanks Declan.
BT, Sorry, but I've never used Bloomberg.