The market continued its effortless low volume move higher today without holding back. 50 and 100 MA resistance? Forget it. The NASDAQ has now climbed 4.5% this week while the S&P 500 has moved up 4.1%. That is over 1% per day with little to no resistance.
For active and casual traders alike, this is a nice rally but still a tough market to trade. Heading into today’s session the obvious call was taking profits and shorting into an overbought market expecting a reversal. However, this view was tough to cling to when there was yet another 1%+ move to the upside.
Regardless of what happens tomorrow, next week will offer us major signs as to which way the market is truly heading. A long holiday weekend and a fresh Quarter should spark a few above average volume sessions that will tell us everything we need to know. Until then, stay frosty tomorrow and may you have an absolute fantastic holiday. See you back here after the 4th!
| 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.
