The oversold bounce came right on cue with greater than 3% gains across the major indices. Volume was noticeably light at the end of last week, especially given that it was options expiration. It continued to be on the light side today. Despite the light volume, the Nasdaq was able to climb back over its 200-day moving average. That's an impressive feat but it still needs to follow through and clear the congestion zone that all of this month's chopping around the 200 DMA left behind.
The S&P looks poised for an attempt on its 200 DMA.
The VIX touched 30 and dropped to a new 8-month low today. That's well off of its October levels but it wasn't that long ago when today's low of 30 was considered sky high. So it's still about 50% above where it began September 2008, which makes sense given that the indices are still well off of their early September levels.
Several upgrades...
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Lat(+) | Down | Down |
| Intermediate | Up | Up | Up |
| Short-term | Up(+) | Up(+) | 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.
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