There has been a good deal of volatility on the major indices over the last two weeks. But all that drama has amounted to nothing but sideways action -- the S&P and Nasdaq are basically right where they were 10 sessions ago. Similarly, oil hasn't ventured far from where it was eight sessions ago. It looks like it's just taking a breather before selling resumes. It's worked off it's deeply oversold condition without having one of the violent snap-back rallies it's enjoyed so many times in recent months.
The indices seem to be in need of some catalyst to move them out of their trading ranges. Perhaps Tuesday's Federal Reserve meeting will do the trick. Here are the index charts:
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Down | Down | Down |
| Intermediate | Down | Down | Up |
| 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.
Stoch analysis should add to value