For all the volatility & drama in the financial sector last week the indices didn’t move very far. For the week the S&P 500 was up 0.76% and the Nasdaq was up 0.24%. I’m sure the bears are quite frustrated that the market didn’t fall apart in the face of all of the bad news. Both of the aforementioned indices are working on potential double-bottoms and need to take out their August highs to confirm those patterns.
For what it’s worth, the charts of the indices are below. But I wouldn’t put too much emphasis on the technicals this week. Not only do we have a Federal Reserve interest rate meeting on Tuesday but we also have Lehman news, Goldman earnings and options expiration coming up. It should be an action packed week.
The trend table still looks quite bearish
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Down | Down | Lat |
| Intermediate | Down | Down | Lat |
| Short-term | Down | Lat(+) | 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.
