June 2, 2008 Stock Market Recap
Note: I have an appointment in the morning so there won’t be a watchlist tomorrow.
It was a broad-based selloff today. The only sectors that were up were oil, natural gas, commodities (basic materials) and hospitals. The networking, airlines and broker dealers sectors took the brunt of the selling.
The indices are once again perched near important moving averages. The Nasdaq just fell back below its 200-day moving average for the second time in two weeks. These 200 DMA failures remind me of what the Dow did last month.
The Russell 2000 looks a lot like the Nasdaq right now. It’s also trying to make a double top at its 200-day moving average and could retest its March uptrend soon.
The S&P got repelled from that nice round number of 1400 and is coming back for a retest of its 50-day moving average.
The bulls should hope that the other indices don’t follow in the Dow’s footsteps. It’s already confirmed a double top at its 200 DMA, broken its 50 DMA and is now being repelled by the 50 DMA after a retest.
A few changes today
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Down(-) | Down | Down(-) |
| Intermediate | Up | Up | Up |
| Short-term | Lat(-) | Down(-) | 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.
Post from: Trader Mike's Blog
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