It was a bit of a struggle mid-day but the bulls managed to get the upper hand for the second day in a row. Volume increased from yesterday but it wasn’t spectacular. The S&P and Dow rose above important moving averages today but until they take out the July highs I’ll tag both indices as range bound.
The Nasdaq is sitting just under that 2075 area I pointed out yesterday. I’m sure a lot of people are watching for a breakout above last week’s high which would make a (very short) W-bottom.
Here’s the S&P 500:
The Dow touched its trendline and fell back today. Obviously it needs to break that line and then take out the July highs to have a more bullish posture. I see a potential W-bottom on the Dow as well.
No changes today although I’m tempted to switch the S&P’s intermediate trend to “up”. I say that because it’s above its 50-day moving average now. But what’s bothering me is the slope of the moving average as well as the fact that the index is right where it was in mid-May. So I’ll keep it as ‘lateral’ for now.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Down | Lat | Lat |
| Intermediate | Down | Lat | Down |
| Short-term | Up | Up | Up |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
