The market began working off some oversold readings today, however volume was a bit lower than one would like to see. Today could be the start of a several day move higher or longer which would be welcomed at this point. A decent price target would be the now downtrending 10 day moving average which lies around 2708 on the NASDAQ.
From peak to today we have declined -7.2% which is still considered to be a healthy pullback, especially given the record run leading into it. Expect fresh world news drama to keep volatility high for atleast the next few weeks though.
Charts below with Silver which looks to be topping out at this time. Gold is in the same boat and I would consider locking in some profits for those investors that have enjoyed the stellar run to date. Stay frosty.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Up | Up | Up |
| Intermediate | Down | Down | Down |
| Short-term | Down | Down | 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.
