March 27 Recap: The Kiss Goodbye?

Selling was broad-based today but there wasn’t much volume behind it. The major indices each lost at least 0.5% on the day as they hover near their 50-day moving averages. The Dow and Nasdaq closed beneath their ‘fiddies’ and are close to giving stochastic sell signals. The S&P is only 3 points above its 50-day moving average and it sure seems likely that it will also break that line. But I can’t get too excited about playing the short side here unless volume picks up. You know what they say about shorting a dull market…

Worden had an interesting S&P chart & comment tonight. He did another of his “kiss the channel goodbye” pieces today. In other words, the index broke down out of its channel and then rallied back to touch (kiss) the bottom of that channel before rolling over. The channel he used, which is shown below is a regression channel with parameters of 100, 17, 20:

Here’s my S&P chart. My focus will be on the 50-day moving average tomorrow.

The Naz is looking like a short to me but I’d like it better as a short if it breaks Monday’s low on higher volume.

Looks like a retest of 800 on the Russell is around the corner.

The Nasdaq’s intermediate-term trend is now down since it broke its 50-day moving average.