The price action was certainly disappointing today but there are a couple of good reasons not to read too much into it. First, volume was really light, so the selling wasn't intense. (That could be taken as a bad thing though, if you're looking for a flushing out of the weak hands.) The other reason is that short-term support put in on Friday's reversal are still intact. That's the obvious place to look for short-term support but on a slightly higher time frame I'm focused on playing the downward sloping channels I've drawn on the charts below. The indices are in the middle of those channels so my motivation to do anything right here is low. But I'm a (short) seller when and if we get back near the tops of those channels.
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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