Another rough day for the market as sell pressure continues to pile on and investors lose even more confidence in the economy. QE2′s artificial boost has run dry and investors realize that QE3 is not in the books (atleast yet). We are still very oversold at the moment but that has done little to stop this bear train.
Technically speaking, we are now within reach of moving into the red for 2011 which is 2652.87 on the NASDAQ and 1257.64 on the S&P 500. Below this lies the next key support for the market which is the 200 day moving average. On the upside, a quick 1 – 3% rally higher to work off oversold readings would not be a big surprise at this time.
The toll for this latest sell off now stands at -5.6% for the NASDAQ in the last six days. Needless to say, cash remains king.
| 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.
