It seems that all this year I’ve been writing about low volume rallies and higher volume selloffs. The last few days are another example of that bearish action. The indices were short-term overbought and the Dow had been up for a very rare 8 days in a row so some selling wasn’t shocking. The question now will be how does the market hold up as it approaches nearby support.
It’s been a short trip inside the February gap for the Nasdaq. It slipped back under that gap today and is approaching a couple of moving averages and its March trendline.
The S&P is sitting on a couple of levels of support — the March highs and the March trendline. Even if those break, I can’t get too bearish because the nearby 50-day moving average should provide support.
I talked about a potential break of the Russell 2000′s March trendline yesterday and it broke today. That’s a bearish development but it’s still above its 50-day moving average and making a series of higher highs. A close below 790 (the late March lows) would turn me into an all-out Russell bear.
No changes
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Up | Up | Up |
| Intermediate | Up | Up | Up |
| Short-term | Up | Up | Up |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
