August 23rd 2011 Market Recap – Bottom Established?

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A very strong day for the market as the major indices posted their first notable accumulation day since mid July. August lows are now very well established and we could easily see further upside from here.

Now is the time to tweak your watch lists for strong stocks holding up and building legitimate bases. Putting some cash to work today would not have been ill-advised, however tight stops are a must. I would also only consider strong names (AAPL, BIDU, HANS, CMG, GMCR, etc) or simply an index ETF such as SPY.

2500 on the NASDAQ and 1190 on the S&P are key targets where I would start becoming much more interested in this market. Until then, we should expect anything and remain on high alert for further price depreciation.

Stay frosty out there!

Trend Table
Trend Nasdaq S&P 500 Russell 2000
Long-Term Down Down Down
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.