The bears came close to breaking through the S&P's May low today but the volume just wasn't there. As you can see in the chart below, the index has been range-bound this month, and covered almost the entire range in the last two sessions. Like I said yesterday, I just don't see that range breaking ahead of the long weekend. Another thing that I see developing in the S&P chart is the crash course the 50 and 200-day moving averages are on. The 200 DMA isn't showing in the chart below but it is declining about as rapidly as the 50 is rising. We could start to see price get squeezed as those lines converge in the coming weeks.
The Nasdaq has a similar moving average situation forming, although it seems content to just ride the 200 DMA.
More downgrades to short-term trends today...
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Lat | 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.
Hello -- I have been reading your site here for about a year along with about 5 others sites during that same timeframe. Your comments, insight, accuracy and method of explaining yourself has been the best i have seen --- outstanding!! T
Thanks T.