The volatility just won’t let up. Today the indices swung in 5 to 6% ranges. It appears that they successfully retested the October intraday lows. Like I’ve said many times before, I prefer retests that break the prior low and then bounce. I feel like that’s the way to be sure all the weak holders were shaken out. We only got that type of retest on the Nasdaq though. The other indices approached their earlier lows but reversed before hitting them. Nonetheless, it appears that sellers just can’t push the market any lower right now. As I see it the ball’s now in the bulls’ court. They need to break through resistance and start making some higher highs. Breaking the top of all the triangles on strong volume would be a good start.
No changes
| 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.
What concerns me about todays gain, according to barchart.com, gainers were 2010, losers were 3600. Very poor breadth.
The Nasdaq is starting to look more like a descending triangle than a symmetrical triangle now. I’m even more bearish after today’s action.