Normally 4% gains would be big news but not so much after losing 9% yesterday. But I do think we saw some promising action today. Buyers were able to withstand two selloff attempts. The late day rally was quite impressive and brought the indices back near the highs of the day. Of course another way to look at today is as a confused market. The indices swung over 3% three times in a single session. That’s making the volatility junkies quite happy.
There’s still a lot of economic data to be released this week which could spark a big move one way or the other. But I would not be surprised to see the indices perched right at their September trendlines at Thursdays close just to have maximum drama for Friday’s payroll data.
All the short term trends have flipped back to up.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Down | Down | Down |
| Intermediate | Down | Down | Down |
| Short-term | Up(+) | Up(+) | Up(+) |
(+) 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 know predictions are worth less than the energy it takes to verbalize them, but it seems like a year end rally may be in the offering, with everyone front-running the “January effect”. Which means, of course, the first quarter could be a rough time for the 3 bulls that are left…..