I don't want to read too much into today's rally because it was on lackluster volume and because tomorrow's employment report could override any technicals. The S&P and Nasdaq climbed back above their 50-day moving averages today. That's a good sign for the bulls but we've still got to watch out for those indices forming head & shoulders patterns. Hopefully things will be clearer by midday tomorrow.
I rarely even look at the Dow so I was surprised to see how relatively well it's held up.
Several upgrades today
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Up | Up | Up |
| Intermediate | Lat(+) | Up(+) | Down |
| 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.
Mike,
Good observation on the DOW. I've been watch it for a while and noticed that is has been lagging behind the S&P and NASDAQ. I was thinking we would see it fall hard if the trend broke but the bulls have been very resilient.
Exec
Timberrrr!
Yeah Timberrr on the bears you mean. When are you guys going to wake up and acknowledge that this rally has lasting power through the end of this year. I reiterate, it will be a January sell-off. Wipe the sleep off your eyes and look at the chart action of the leaders. Indexes will follow the leaders, not the other way around. Enjoy your weekend.
Can't argue with that logic
Well, one could argue we will not see a downturn until Feb or March.