What a wild day this was. A fierce early rally attempt took the Dow up 100 points but then the bears put the smack down. The result was another of those broad-based down days. (I know Worden was having a fit today thanks to yet another day with extreme readings.) Retail and airlines (thanks to oil I guess) were the only sectors which closed up for the day. The index that really stood out today was the Dow Utilities Index which was down 2.71% on a huge increase in volume. Rising interest rates get the blame for this move.
This morning I wrote that I would be looking for shorts as long as my intraday indicators were bearish. As you already know, I use moving averages to tell me to be a bear or a bull. Those moving averages saved me from falling for the early rally this morning. By 10:30 there was a nice set-up showing on QQQQ. Once the low of the 10:00 candle was broken I jumped in.
It was a distribution day for the Nasdaq as it broke its March uptrend. I’m looking for the bulls to put up a fight around 2,525 again.
Looks like a retest of 1,500 is coming up for the S&P, which also broke its March uptrend today.
After a failed breakout the Russell 2,000 is heading for its 50-day moving average again. That’s been the magic buy spot since late March… will it work this time too?
With the 10-day moving average breaks all the short-term trends are down.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Up | Up | Up |
| Intermediate | Up | Up | Up |
| Short-term | Down(-) | Down(-) | Down(-) |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
good post mike. Today was a breath of fresh air for me as i was waiting for a good down day on strong volume. I also enjoyed that article you had linked about the bullish trend in the WSJ. It kind of reminded me when Barrons had that article back in 2000 with the cover saying “Are you rich yet?” that was the kiss of death for the markets. thanks again.
Intersting upper wicks that formed over the past few days on those charts you posted. Quite distinct from some of the previous new highs. One could almost feel the pending downward pressure.
thanks for your hard work! Love the charts!