Another day and another rally on fresh speculation that last week’s speculation of a new European band-aid is possibly coming together.
Both the S&P 500 and the NASDAQ broke above their downward trendlines and their 50 MAs today. Volume continues to fall off with today’s being almost non existent. Price levels to watch now for the NASDAQ are 2600 and the 2650; S&P 500 1200 and 1230.
This volatility is really just ridiculous. It feels like the days of a .7% move being a “big deal” are never coming back. The S&P 500 has risen more than 8.5% in five days. Mind you the previous four days before that the S&P shed 6.4%. Talk about a roller coaster.
Overall, unless day trading cash remains king. Furthermore, until Europe resolves itself investors should not be surprised by anything. Stay frosty out there and I will see you tomorrow for another recap.
Market analysis:
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Down | Down | Down |
| Intermediate | (+) Up | (+) Up | 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.
