Posted by 17 September 2008

September 17, 2008 Recap: T2108 is Finally Sub-20

The bulls had another disastrous day today. The indices were all down between 4 to 5% and the only industry indices in the green were gold and disk drives(thanks to SanDisk’s buyout offer). Broker Dealers nad airlines led the way down today with more than 10% losses. Although volume decreased a little from yesterday it was still very high. One might expect volume to have increased today but I think part of the reason for the slight decline is the way the day played out. A good chunk of the selling came in the last 30 minutes of the day after a failed afternoon rally. About the only good thing (for the bulls) I can say about today is that T2108 has finally breached 20.

Here’s the VIX, which is approaching the levels it hit as the market bottomed in August 2007 and this January…

The S&P and Nasdaq charts look very similar. They both closed under their July intraday lows.

The Russell is giving in to the selling pressure and is part of the reason why T2108 is finally below 20.

Trend Table

Everything’s down again

Trend Nasdaq S&P 500 Russell 2000
Long-Term Down Down Down(-)
Intermediate Down Down Down(-)
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.

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Comments

  1. Posted by Dr. Duru on September 17, 2008 at 8:19 pm

    Retail stocks are still levitating. Once those finally get smashed, we are probably ready to put in a “real” bounce. I think homebuilders will stubbornly stay aloft…?

  2. Posted by Michael on September 17, 2008 at 8:21 pm

    You’re such a bear! ;-)

  3. Posted by Rick on September 17, 2008 at 11:40 pm

    Somehow NVDA managed to gain 4.28%. It broke out of an ascending triangle in the afternoon. It looks like retailers were just moving inversely with oil. All that money were saving on gas needs to go somewhere right? Let’s all go shopping and save the economy! (trying to keep sense of humor)

  4. Posted by Declan Fallon on September 18, 2008 at 5:11 am

    The lower volume in part was due to AIG ‘only’ trading 545m shares vs 1.2bn yesterday.

    Crazy figures….

  5. Posted by Michael on September 18, 2008 at 7:27 am

    Declan,

    That could certainly be the reason on the NYSE and S&P, but it doesn’t explain the Nasdaq’s drop in volume.