The market seems to be stuck on pause while it digests last Tuesday’s big gains. The back & forth action is especially noticable in the S&P 500′s chart. You can see that bulls are refusing to let the index drop very far into Tuesday’s range. So despite some short term sell signals I’m seeing selling doesn’t look very attractive to me right here. My guess is that the market works off its short-term overbought condition by simply chopping around. A ‘gentle’ touch of the August – September trendlines would get me real interested on the buy side…
No changes
| 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.
I agree with you Michael, the market’s trying to breath on a tight trading range. Been on a shopping spree for a couple of days and already go to 50% cash now. I believe when the overbought indicator went south we can see some acceleration into the upside — as long as there’s no bad news.