We had some short-lived gains this morning after a pretty good sixed gap up. Sellers got the upper hand right at the open but couldn’t create any follow-through in the afternoon. The Russell 2000 and Nasdaq were down about 3 times as much, on a percentage basis, as the S&P and Dow. But the NAsdaq and Russell’s daily charts still show good relative strength versus those larger cap indices. The Dow actually broke its August trendline today. It wasn’t a very convincing break though given the lack of price movement after the line was broken. I think the more important level is the February low, which happens to coincide with its 50-day moving average at the moment. Note that it’s already reaching short-term oversold levels.
The S&P slipped back into the consolidation zone from earlier this month. It’s also threatening a trendline break.
The Nasdaq is still holding above 2,500 and is dropping out of overbought territory.
The Russell 2000 is still solidly overbought.
The S&P 500 broke it’s 10-day moving average so its short-term trend is now down.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Up | Up | Up |
| Intermediate | Up | Up | Up |
| Short-term | Up | Down(-) | Up |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
