Today was a chop-fest which turned out to be a stalemate between buyers and sellers. The indices are back in short-term overbought territory based on stochastics and at near their upper Bollinger Bands do don’t be surprised to see some retracement here. I wouldn’t be an all-out bear here though since quarter-end markups could keep us propped up for a couple of more days.
One other thing, I continue to be amused by all the hype over the ‘threat’ of all-time highs on the Dow. As I’ve written before, that index is damn near useless for at least two reasons — it’s only 30 stocks and it’s a price-weighted index.
Here are charts of the S&P 500 and Nasdaq:
No changes.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Lat | Up | Lat |
| Intermediate | Up | Up | Up |
| Short-term | Up | Up | Up |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
Amen, the CNBC hype is over the top. I’m planning on switching to Bloomberg TV over the next few days.
On the other hand, more media hype means more small investors return to the markets (they don’t want to the only ones left out when the markets go to the moon). That means, more exaggerated price moves with sharper reversals. Should be great for traders who know to watch for it!
I’d say, start a new 24/7 Dow celebration station, but CNBC has already rushed to fill that niche. God bless ‘em!