Another fairly uneventful session leaves the market in a peculiar situation. Even though the market was overbought heading into this week, it would have been good to see a push higher towards the key resistance levels mentioned previously (2600 and 1250) before a reversal.
If these last two days of mostly horizontal action break into a 2%+ downside session later this week then there is a very high risk of a legitimate retest of the August 9th lows.
Trend Table
| 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.
