The early buying enthusiasm dried up pretty quickly and the day became a chopfest. Although the indices closed up solidly on the day I’ll characterize the session as a stalemate. The ETFs for the Dow, Nasdaq and S&P 500 closed very near their opens and made doji patterns (remember that the indices containing NYSE stocks don’t show the actual open so I’m referring to the ETFs). Doji indicate confusion and may indicate a reversal. It’ll be interesting to see if the bears can push the indices back into yesterday’s range and create some bearish evening star patterns.
QQQQ retested it’s 2007 high and fell back. Look out for a double-top.
Here’s the Nasdaq doji:
And SPY’s doji:
The small caps finally got a close above the 200-day moving average.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Up | Up | Lat |
| Intermediate | Up | Up | Up |
| Short-term | Up | Up | Up |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
*** I’m simply using the indices’ relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.
Get ready for the (typical) Fed fade, I guess. Oh yeah – welcome back. Enjoyed the trip, pics!