The market finally ventured out of the tight range it’s been in for the previous five sessions. Much to the bulls’ chagrin, that break came to the downside and broke the uptrend which has been intact since mid-March. The danger now, especially for the Russell 2000 and Nasdaq is giving back too much of last week’s rally. Most bulls would like to see no more than two-thirds of that rally retraced. But if the bulls can defend the 50-day moving averages that won’t become an issue. We could easily see battles over those moving averages tomorrow.
We’ve got downgrades of all the short-term trends today. Will the intermediate-term trends now fall in line with the long & short-term trends?
|Trend||Nasdaq||S&P 500||Russell 2000|
(+) 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.
Post from: Trader Mike's Blog