I'm sorry about the lack of posting last week. The site crashed on Tuesday and I just didn't have the energy to rebuild it again. I finally decided to bite the bullet and switch to another blogging platform. The site's functional now but I've got some more tweaking to do and have some old posts to re-upload before it's 100%. So on to the market...
Last week's dip has made the indices the most oversold they've been since the March bottom. It's also made for an interesting trend table (see below). We now have the intermediate-term trends trying to withstand downward long and short-term trend. But that's par for the course when the indices are in no-man's land (what I call the area between the 50 and 200-day moving averages). Given the relatively light volume the end of last week and the oversold stochastic readings I'm expecting a bounce in the short term. Here are charts of the Nasdaq, S&P 500 and the Banking Index (BKX)
No changes
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Down | Down | Down |
| Intermediate | Up | Up | 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.
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