So the oversold market has finally produced a bounce that could last all the way through a trading session. That’s very good news for the bulls after yesterday’s less than inspiring action. The indices were able to chew through some key levels today, like 1040 on the S&P 500. All of a sudden, with the indices rebounding above the February lows, the technical picture isn’t quite so favorable for the bears. So until I see some evidence to the contrary I’m working under the assumption that the market is range-bound — stuck between those February lows and their 50-day moving averages. Hopefully earnings season, which is just around the corner, will clear things up.
Surprisingly only one of the short term trends flipped to “up” today. That just shows how stretched to the downside the market was.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Down | Down | Down |
| Intermediate | Down | Down | Down |
| Short-term | Lat(+) | Up(+) | 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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