On Friday the Nasdaq and Dow came real close to completing those potential falling three methods patterns. But like they say, almost only counts in horseshoes and hand grenades. A crush of late day buying pushed those indices back above Monday’s lows. Was it ‘real’ buying or just short covering? I have no clue but I guess we’ll get a clue based on whether the buying carries over into Monday.
Although I’ve got all the short-term trends classified as down they could easily be called lateral. I think we’ll see a lot of choppiness as long as the indices are between Thursday’s high and Monday’s low. I’ll be watching for that range to break this week and will be ready to play the break either up or down.
I’m reclassifying the S&P’s short-term trend as ‘down’ since it slipped under its 10-day moving average.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Up | Up | Up |
| Intermediate | Up | Up | Up |
| Short-term | Down | Down(-) | Down |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
