After a strong open and positive morning on the upswing, the market rolled over into the afternoon and sold off heavily into the close. While still a positive session overall, this price action suggests this market is not ready yet to break back higher.
A lot of the volatility the last three sessions has been driven by European drama and our own issues here in the US. Our debt ceiling needs to be raised to avoid default (it will happen despite the growing “concern”), and Bernanke has pre announced hinted at QE3. Lastly, the flight to Gold is officially back in force as we closed at fresh highs today.
Sorting through all of that to trade is no easy task, but I am sure atleast active day traders are enjoying themselves. Stay frosty out there and I will see you back here tomorrow.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Up | Up | Up |
| Intermediate | Up | 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.
