The bulls can't be happy with the way the market sold off in the last hour. But, as I often have to remind myself, the market often takes a day or two to figure out where it wants to go after a Fed decision / statement. (we had the exact same reaction after the September 23rd Fed meeting and the market reversed two day later) So I wouldn't read too much into that late selloff. Also, Cisco (CSCO) lifted the indices in the after-hours session with its earnings report. At the end of the regular session I was eager to get short tomorrow. I just knew there would be tons of stocks that made shooting stars and other bearish candles today. Even better, many of them would be at or near important moving averages. But Cisco curbed my enthusiasm with a quickness. I'm also a little concerned that we won't move much tomorrow because people may wait for Friday's jobs report to make any serious comittments.
The 50-day moving average has been a key level on the S&P 500 and it could become a factor on the Nasdaq if CSCO can avoid the post-good-earnings slides that so many stocks have had this earnings season. It seems that the indices always end up at some important technical level right before the monthly payroll report so it wouldn't surprise me if the Nasdaq and S&P closed near their 50 DMAs tomorrow.
No changes
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Up | Up | Up |
| Intermediate | Down | Down | Down |
| 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.
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