And just like that we get a continuation day as the markets gapped to the downside and did not recover. Commodities are the real loser today though as Goldman apparently has advised clients to cash out (hat tip Mark) on their positions.
The NASDAQ closed below its key 50 day moving average support and the S&P 500 closed right at its support. Volume was lower than average across the board. Cash is probably best at this time until we can move back above 2800 on the NASDAQ.
Oil stocks had a rough day and most key leaders today showed big sell signals for momentum investors. Stocks like BHI, HP, PKD, GPOR, AREX, BEXP, CWEI, ROSE, CHK, amongst others have been under heavy distribution the last two days. If not stopped out already I would consider taking profits on these stocks until fresh strength can be illustrated.
Charts of the indices alongside Oil and Gold below. See you back here tomorrow.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Up | Up | Up |
| Intermediate | (-) Down | Up | Up |
| 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.
