The indices had some pretty good percentage gains today but I still classify today as mixed. The S&P and Nasdaq both fell back from resistance and today’s gains come on declining volume. The indices remain close to resistance and tomorrow’s flood of economic data could determine whether those resistance levels will hold or not.
You can see that the Nasdaq is at an important juncture. It has to break the blue trendline or the horizontal resistance around 2400 tomorrow. The dark bodied candle (the close was lower than the open) shows that bears actually won the intraday battle for the second day in a row.
The S&P 500 is at a similar juncture:
The picture should be a lot clearer after all that data is released in tomorrow’s pre-market…
Still 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
I like your analysis of today’s action, Mike.
It certainly feels like the bears haven’t finished their mauling of the market. What a great time to set up an index fund. I’ve spent the past 2 days researching Zecco and SogoInvest, trying to determine which one has the best setup for dollar cost averaging for long term investments, and also looking at them to see if they would be good candidates for setting up daytrading accounts. I’ll post the results of my research tomorrow.
At any rate, what a great time to be buying mutual funds/index funds/ETF’s for long term investments! The past two weeks have created a nice discount of 4% or more. I guess there’s even time to set up an IRA that still allows for a tax deduction in the 2006 tax year…but time is running out fast.
–van