We had an impressive reversal today after the market broke through the early March lows. The Dow, S&P 500 and Nasdaq each found support near their November 2006 lows. We even had a bullish increase in volume for a change. It seems clear to me that many buyers were just waiting for those March lows to be retested before putting money to work. Of course the big question now is can the market follow through and take out the highs from two day ago.
Before I get to the charts I just want to mention that posting may be light & irregular over the next week or so. I’m planning on taking this expiration Thursday and Friday off as usual. We have a Fed decision next Wednesday and I’m definitely taking that day off and possibly Monday and Tuesday as well. I’ll do some recaps if I see anything interesting developing in the charts but I can’t say if I’ll do any morning watchlists until after Wednesday.
Here’s a look at T2108 which is showing a bullish divergence vs. the indices — it did not make a new March low along with the indices.
The S&P still needs to break the blue trendline and make a higher high before I can get bullish on it.
Once again I’m focused on the 2400 area on the Nasdaq.
The Russell 2000 managed to close above that important support near 770.
The Dow broke 12,000 and came roaring back.
No changes
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Up | Up | Up |
| Intermediate | Down | Down | Down |
| Short-term | Down | Down | Down |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
We seem to be following Asia in the last 2 weeks. This evening Japan is up, and if they close up we may see a continuation of the rally tomorrow. The RUT support you have mentioned several times worked very well!
Great post. slacker.
If I traded, I may care
.
Why you people insist on trading. You dig your little charties.
you watch the mavs folderoo tonight against nash and stoudemire
Thanks Mike. BTW I tracked back on your “sucks” discussion and a daily chart would be interesting. BTW I like the ICE sentiment near real time index as a help for any intra-day decissions. It would have shown me yesterday that the market was turning.
Have some nice days off.
cheers, curt