Thank you to those readers that left comments after last night’s market update. As I get started to post more often, it is great to hear from you the readers and to know Mike still has his loyal following!
It definitely did not take the bulls long to regain control over the market. All indices are now trading back above their 10 day moving averages alongside other important technical levels.
Key Index Updates:
- The S&P 500 closed at a fresh 52 week high above 1302.67. Volume was just above average though and could have been higher. Nonetheless the index has cleared last Friday’s sell off and financial stocks are looking good.
- The NASDAQ lead the market today with extremely heavy volume (although not quite as high as last Friday). The index barely pierced last Friday’s session high of 2755.28 intraday and closed at 2751.19 for the day. The 52 week high mark (2766.17) is now the price to watch moving forward which could easily be tested before the end of the week. This price level is also important to claim higher highs. Lastly, a potential horizontal channel is emerging.
Individual Stock Insight:
Baidu.com (BIDU) was the big focal point in the news today as the Chinese search engine posted strong earnings, good guidance, and made a big forward looking statement that it is going to enter the social world. Some further insight can be read here at FundMyMutualFund. I have included a chart of BIDU as well tonight to show off its four month base breakout. The technical buypoint would have been $115.10 (the stock opened at $117.50ish). I would consider trying some shares here around $118 and am keeping an eye out for a potential bull flag to develop.
Charts for both indices alongside BIDU are included below. Stay frosty out there.
All three indices now trading back above their 10 day MAs.
| 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.
You know what I liked about Mike. I wrote about this in one of the emails I sent him. He was articulate. Now that’s a quality required for good blogging.
Blain…welcome aboard!!