Nothing major to report today as both bulls and bears continue to push and pull. The session finished with lower than average volume and an inside bar has formed which could make tomorrow interesting. On the S&P 500 a wedge looks to be forming if you connect the series of higher highs and lower lows (chart below). This is overall irrelevant though as the NASDAQ is the key index to watch.
As far as interesting equity news goes, today Netflix (NFLX) was in the spotlight as it was announced that facebook would be adding on a movie rental service via a partnership with Warner Bros. NFLX stock as a result gapped below its 50 day moving average and finished the session down 5.6%. The stock is now filling its gap range from 01/27/11 earnings and for shorts I would put a short term price target of atleast $186.50 on the stock. Chart below.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Up | Up | Up |
| Intermediate | Up | Up | Up |
| Short-term | (+) Up | (+) Up | 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.
