After two very choppy days the market found its footing and had a trend day. There are theories for why the market rallied today (rates dropping; Bear Stearns’ comments; bears taking cover ahead of the Fed) but I’d like to think that it was just an oversold, technical bounce. The S&P bounced off of its June low, which we’ve been watching for a few days now, and the Nasdaq rebounded from its 50-day moving average. Volume was basically flat with the levels of the previous two sessions. I would have expected more volume from a day with such a big move in price. Perhaps the looming Fed statement had people holding back just a bit.
No changes.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Up | Up | Up |
| Intermediate | Up | Lat | Lat |
| Short-term | Up(+) | Down | Lat(+) |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
