Oil prices and a steep downgrade of Greece debt was enough to bring sellers back in numbers as the major indices sold down throughout today’s session and closed far in the red.
The highlight today though was the NASDAQ which intraday broke below its 50 day moving average, then by the end of the day had closed back up above this key support. The NASDAQ posted its 4th consecutive distribution day but is holding its 50 MA support for the third time now in two weeks.
The bottom line here is that cash still remains a great place to be given the uncertainty surrounding the market (read my tips for trading in this type of market). Technical analysis below including a chart of crude. Stay frosty out there.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Up | Up | Up |
| Intermediate | Up | Up | Up |
| Short-term | (-) Down | (-) Down | 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.
