The market had a promising reversal today after a weak open. Even better, the strength came on one of the highest volume days we've had in months. Despite those and other positive technical developments, we still need to see some follow through. Tomorrow's big bad jobs report could provide the needed spark or it could take the market right back down.
The Nasdaq actually broke its 50-day moving average and its January downtrend today. I'm surprised that I'm saying this but it looks like it's ready to breakout. It's certainly in a good position for some good (better than expected?) news to give it a pop.
The S&P 500 doesn't look quite as good as the Nasdaq and it's no wonder with all the financials weighing it down. Let's see what the news flow bring us...
The QQQQ is actually up for the year. It's worth taking a look at how the sector ETFs have done year-to-date as a reminder that there's actually some strength in this market. Could we possibly be back to the good old days of tech leading the market higher?
no changes
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Down | Down | Down |
| Intermediate | Lat | Down | Down |
| Short-term | Up | 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.
Funny that tech is showing leadership. "Kramer" was pleading with viewers this week to avoid tech because Feb starts its seasonally weak period. I wish I could see some real data on that.
If it wasn't for the jobs data Friday it probably would be an easy follow through; semiconductors doing plenty of leg work.
http://blog.fallondpicks.com/uploaded_images/SOXFeb5-723610.png
DJF