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July 24, 2008 Stock Market Recap

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…

Trend Table

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.

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  1. 4 Comment(s)

  2. By upsidetrader on Jul 26, 2008 | Reply

    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

  3. By Declan Fallon on Jul 28, 2008 | Reply

    Happy B’Day Mike,

    Enjoy the day!

    DJF

  4. By BT on Jul 28, 2008 | Reply

    How do you pull up the stochastics on Bloomberg charts? every function is use comes up with much lower levels (ie. 50)

  5. By Michael on Jul 28, 2008 | Reply

    Thanks Declan.

    BT, Sorry, but I’ve never used Bloomberg.

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