This was an interesting session, although you wouldn’t know that just by looking at the change in prices day to day. We gapped up to new 2 year highs then gave back half of the gap, rallied back up and then sold off hard late in the day to close near unchanged. This is a day when the candlestick charts can give you some extra insight. Despite the innocent looking small changes in prices by day’s end, we had bearish candlesticks made all over the place. In the case of the indices (and many stocks) those candlesticks printed right at old resistance. I still feel pretty much the same as I did yesterday but today’s action gives me a little more confidence that the market is in for a little cooling off. That could just mean sideways… doesn’t have to be a drop.
Silver and gold had some pretty impressive reversals today. On both charts a breach of the November lows will confirm double tops.
No changes
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Up | Up | Up |
| Intermediate | Up | Up | Up |
| 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.
