Jan. 23, 2007 Stock Market Recap

It was a decent day for the bulls with the S&P regaining about 2/3 of yesterday’s losses. Those gains came on increasing volume so the bulls have to like the volume action. We had similar action on the Dow and Russell 2000 but the Nasdaq reversed mid-day to close barely changed on the day. None of the aforementioned indices have moved very far over the last 3 sessions. They seem to be waiting for some big news to decide which way they will break from their ranges.

Here’s the Nasdaq chart. It’s showing oversold stochastic and made a bullish inverted hammer candlestick today.

1430 has some kind of magnetic pull on the S&P 500…

The Russell is clearly range-bound. Chop, chop…

Trend Table

These short-term trends are getting whipsawed especially on the Russell…

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

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

Comments

  1. Posted by PAUL on January 23, 2007 at 7:42 pm

    Hey Mike!

    What is the difference between an inverted hammer
    and a hammer – (and humpty dumpty) – the hang man

    and does the color of the bar it belongs to – change any of the meaning? Oh? and if it is at the top of the run or the bottom of the slide.

    I’m sure you don’t have time for this – you could send me to a site that has it written.

    Thanks – hope things are going well….

    paul

  2. Posted by Terence K on January 23, 2007 at 8:43 pm

    Mike,

    I appreciate you doing the dirty work on the tech analysis. I just wanted to let you know that I reference your posts for any kind of chart reading of the indices (http://optionjungle.blogspot.com/2007/01/market-technicals-via-trader-mike_23.html).

    Keep up the great work.

    Terence

  3. Posted by Michael on January 24, 2007 at 9:16 am

    Paul,

    An inverted hammer has the shadow (wick) at the top and it has to be after a downtrend. It’s not as bullish as a hammer. A candlestick with he same shape as the inverted hammer which occurs after an uptrend is called a shooting star.

    Terence — thanks!