It was another choppy session but unlike the last two this session ended on a weak note. The late selloff erased yesterday’s gains and put the market back in the middle of Monday’s trading range. More important, the indices are at a point where they’ll have to break out of the coils they’ve been making. Hopefully that means either up or down but more sideways action would also take them out of the coils. I suspect the indices will be gapping out of these consolidation patterns after tomorrow morning’s payroll data. I’d give a slight edge to a gap up only because it seems that expectations are incredibly low.
Slight downgrades to the short-term trends since all three indices are so close to their 10-day moving averages.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Down | Down | Down |
| Intermediate | Down | Down | Down |
| Short-term | Lat(-) | Lat(-) | Lat(-) |
(+) 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.
This pullback was fine. Stochastics were overbought on the intradays. Understandable most are unsure here.