We often have to wait a day or two after a Fed meeting to see the market's true response to their decision. I think that will be the case this time because I'm not sure how much of the mildly negative reaction was due to what the Fed actually said and how much was due to the budding Bernanke / Bank of America controversy. What I see in most charts though is a weak bounce from Monday's slide. So despite the market being close to short-term oversold I'm expecting more weakness. I like the short setup that the S&P 500 is presenting right here. If (and only if!) it can break today's low I want to short it with a stop just above its 50-day moving average. There are a lot of stocks with similar setups tonight -- a weak bounce that created a bearish candlestick near a major moving average. I've got my eye on the likes of FWLT, JEC, FCX, SLB, KBH... even GOOG is in danger of breaking its 50-day moving average.
No changes.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Up | Lat | Lat |
| Intermediate | Up | Lat | Lat |
| 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.
Leave a comment