This was a pretty quiet day volume-wise despite a pretty good point selloff on the indices. It was one of those days where I had to keep wondering if my scanner was still working b/c so few stocks were popping up on it. A key criteria of my scans is a surge in volume so I had a good idea that volume would be pretty light by the end of the day. Thankfully there's always the QQQQ available to trade.
Today's action brought the Nasdaq back under its 200-day moving average. It remains a good distance above its 50-day moving average and its July uptrend, so the bulls shouldn't be sweating too much over the Naz yet.
Things are less rosy for the S&P 500. It's back below its 50-day moving average and threatening its July uptrend.
I was a little amused by all the news coverage the last few days of the small cap outperformance. I've been noting their relative strength for weeks now. It's probably time for them to lag now the the mainstream media has noticed. ;-)
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Lat | Down | Up |
| Intermediate | Up | Lat | Up |
| Short-term | Lat(-) | Down(-) | 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.
Comparing the NYSE and Russell 2000 is like chalk and cheese. Will NYSE support or Russell 2000 resistance break first?
DJF