We got another one of those vicious bear market rallies today. This one felt a lot like the one we had on October 13th. At the time it seemed like a game changing move but we know what happened to that rally. So once again we’re looking a a good start that needs some follow-through. Despite the huge gains today there’s still plenty of overhead resistance…
Some improvements in the short term trends but the small caps are lagging noticeably though. They’ve swung from leaders to laggards over the last few weeks.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Down | Down | Down |
| Intermediate | Down | Down | Down |
| Short-term | Lat(+) | Up(+) | 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.
I like the fact that the last couple of days (before today) have been on low volume. A bullish perspective would be that no one is pressured to sell at those prices anymore, as they’ve already sold, as evidenced by said relatively low volume and range contraction.
The cake is a lie.
Looks like volume was the second highest in the last 8 or 9 sessions? Hopefully that’s positive. Asia was jumping around like crazy already…
It will be interesting to see how the Naz handles the overhead trend line and the 20 day MA hanging over head.
If AAPL can pop something fierce and get the index going again… ?
OMG, we have reached the bottom again and now we are going to go up. If you don’t believe me listen to CNBC. They have been calling a bottom and telling everyone to jump in every day for the past two months. I am sure they are going to get it right – one of these years. Looks like another bear trap to me!!!