We had some impressive selling today for such a light volume day. Practically all of the major indices were down 2% on the day and decliners swamped advancers by more than 3-to-1. So in just one session the market has erased most of last week’s bounce off of support.

It’ll be a bad post-vacation surprise for the bulls if the small caps break their 200-day moving average. For a while it seemed like the small caps would pull the rest of the market up but that theory’s not looking so good right now…

Trend Table

No changes

Trend Nasdaq S&P 500 Russell 2000
Long-Term Down(-) Down Lat(-)
Intermediate Up Lat 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.