Even though the market ended down I have to give a slight edge to the bulls today. The Nasdaq, S&P and Russell 2000 tested support and were able to bounce. All three indices made candlesticks with “bottoming tails” as a result. Volume increased today as well which, I think, shows some buying interest. I’d be more convinced that today was some kind of important bottom if volume was even higher and if the market was more oversold. Right now I think we’re in for range-bound trading — possibly for the rest of the month until the Fed meeting. Won’t that be fun?
Here’s a chart of Google (GOOG) which has dome a great job of holding above its 200-day moving average:
No changes to the trend table today…
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | LA | Up | Up |
| Intermediate | Down | Down | Down |
| Short-term | Down | Down | Down |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
LA Indicates a Lateral trend
