I’m back from vacation and judging by the volume last week I’m not the only one who was away. I haven’t looked through all of my scans yet but the indices appear to be setting up for another push higher. All three of the major indices a I track are see-sawing around their 50-day moving averages. The fact that the didn’t get crushed like the last couple of times the 50′s were touched is a positive for the bulls. Some strength here, especially on strong volume, could create a nice short squeeze as the bears who have been leaning on the 50-day moving averages cover their positions.
Here are the index charts. I’ll try to get some individual stock charts up by the open tomorrow…
The indices are real close to their 50-day moving averages and possibly flipping their intermediate-term trends.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Down | Down | Down |
| Intermediate | Down | Down | Lat |
| Short-term | Up | Lat | 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.
So the lower highs and lower lows are not much of a concern here…?
No, that’s still a concern and part of why I don’t think we’ve quite turned the corner yet