Monday night I wrote "On the down side, an obvious target for sellers is to close this morning's gaps." Those gaps finally got closed today on relatively light volume. While the percentage drops were substantial the volume shows a lack of intense selling. This seems like nothing more than a little consolidation after the big run the market's had. Now that those gaps are out of the way my attention has switched to the December trendlines and the 50-day moving averages. Those lines are closing in on each other quickly and price will have to break through one of them soon. I'm not seeing enough setups in individual stocks right now to have much a bias but, gun-to-head, I'd be leaning short.
The short term trends all dropped to lateral today.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Down | Down | Down |
| Intermediate | Down | Down | Down |
| Short-term | Lat(-) | Lat(-) | Lat(-) |
(+) 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.
Leave a comment