A quick note — since I’ll be on the road there won’t be any recaps or watchlists for the rest of the week.

I can’t say I’m surprised to see today’s action given the low volume rise I talked about yesterday. Things could get interesting now as the folks who just had to chase & bought the last few days decide whether or not to bail. As you’ll see in the charts the indices are at or near ~6 week trendlines. It’ll be important for the bulls to defend those areas. If those lines break then I see the August 23rd / 24th lows as the critical line in the sand.

Here are charts of the Nasdaq, S&P 500, Russell 2000 (actually the ETF proxy IWM) and the Dow:

Trend Table

I’m downgrading the short-term trends since the indices dropped under their 10-day moving averages today…

Trend Nasdaq S&P 500 Russell 2000
Primary Lat(+) Up(+) Lat
Intermediate Up(+) Up Up(+)
Short-term Down(-) Down(-) Down(-)

(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend