We certainly had impressive price action today with 3.5% and 2.6% gains on the Nasdaq and S&P 500, respectively. Once you look at the charts though, the enthusiasm has to be tempered a bit. Volume was severely lacking today. I think that's mostly because the bulk of today's rally came in the first 45 minutes of the day. The market just drifted for the rest of the session. The other notable thing in the charts is that the indices are still range-bound. They've yet to make higher-highs above their May peaks.
The Nasdaq climbed back above its 200-day moving average and the S&P's 200 is coming into reach -- mainly because it's dropping so fast. It's only 24 points away, so a touch is practically inevitable.
Upgrades to all the short-term trends today...
| 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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