Today was a good example of why the Dow as market indicator can be misleading. A handful of stocks combined to lift that price-weighted index 200 points intraday. So while headlines were marveling at the Dow the rest of the market was decidedly mixed.
The Nasdaq showed signs of trouble at lunch time when it slipped beneath its open and hit new lows for the day. It ended the day near unchanged and still within the bear flag I pointed out yesterday.
I’m showing SPY instead of $SPX so that the true opens and therefore the gaps are shown on the chart. That reveals a doji candlestick for today which ran into resistance at the February 5th gap, just like the Nasdaq did today.
No changes
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Down | Down | Down |
| Intermediate | Down | Down | Down |
| Short-term | Down | Down | Lat |
(+) 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.
Really like you chart based quick market recaps. Good place to learn by spending a min a day.
Booo Dow. The only reason that small index gets as much attention as it does is 1) tradition and 2) its the largest numerically. People love saying “Omg, the market was up 300pts today!” The Dow is NOT the market.