The market had a change of character today as the Dow and S&P 500 outperformed the Nasdaq and Russell 2000 by a mile. Despite today’s large cap outperformance the charts of those indices still look worse than the smaller cap indices.
Apple helped drag the Nasdaq down today. The big unveiling of iPhone 2.0 (3G) was anti-climactic and the stock had a bit of a sell-the-news reaction. But today’s action was just par for the course on a stock that’s been range-bound since early May.
Here are the S&P 500 and Nasdaq charts:
No changes
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Down | Down | Lat |
| Intermediate | Up | Down | Up |
| Short-term | Down | Down | Down |
(+) 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.
Hang Seng Index closed at 23,375.52 downed by 1,026.66 (-4.21%) while Nikkei 225 downed by 160.21 (-1.13%) closed at 14,021.77 and Singapore STI closed at 3,033.05 downed by 50.97 points (-1.65%).
The interesting about this is Malaysia KLCI closed at 1,230.96 downed only by 0.02 points while its FKLI futures June 2008 contract down by 10.5 points to close at 1,204. This is a bearish sign for Dow since KLCI often times follows DJIA and also HSI in the opening morning market. We are seeing a divergence between KLCI cash market and its futures market with a huge gap of 27 points apart and this tells us one thing. Be prepared for a tough day for Dow today.