A positive session today, albeit on lower than average volume, had the market picking up where it left off last week. Upside targets remain at 2600 on the NASDAQ and 1250 on the S&P 500. If history proves accurate, we should roll back over to the downside once this resistance area has been reached.
The rest of August should be interesting. Earnings season wraps up tomorrow with Walmart (WMT) reporting and speculations of QE3 are being floated around. Such an announcement should act as a boost for the market, but hopefully expectations are not too high that we reverse if QE3 does not take place.
If partially long this rebound rally from last week, keep stops tight and stay frosty out there. Otherwise cash is king.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Down | Down | Down |
| Intermediate | Down | Down | Down |
| 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.
