It's looking like the oversold bounce has run its course already. The Nasdaq and S&P both peaked just shy of their May highs today before rolling over on higher volume. There were also hundreds of bearish candlesticks made by individual stocks today. That makes me think that the buyers have exhausted themselves in the short term and that this week will end sideways at best. Despite all the bearish candlesticks I saw little that I'd call an outright short. I'd want those stocks to at least break the uptrends that started last week before jumping on them. Absent some bad news I just don't expect that to happen in the next couple of days as volume shoud dry up ahead of the long weekend...
A couple of downgrades to short-term trends today...
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Lat | Down | Down |
| Intermediate | Up | Up | Up |
| 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.
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