The bears must really be hating this market. Right after all the news about how much short interest has dropped, indicating that they were being forced out of their positions, we get a day which would have been a nice payoff. In a flash the indices are at new August lows. There was no serious volume to accompany today's drop and the indices are still above their March trendlines. That makes me think that this is nothing but a normal pullback in a larger uptrend. The bears will need to break some of the support levels in the charts below, especially the June highs, in order to get the upper hand.
All the short-term trends switched to down today.
|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.