Today was a good reminder to stay on your toes in this market. There’s a constant threat of some breaking news (or rumor) causing a spike, up or down. Today it was news of the government’s plans to subsidize troubled homeowners’ mortgage payments which caused a sharp upward reversal in the last hour. That caused the S&P to jump from a 3% loss to slightly up on the day. While that was an impressive move on the intraday charts the dailies tell another story - that the indices are just chopping around in the middle of trading ranges. We’ll see if the late day strength carries over into tomorrow’s session. Even if it does carry over, I can’t see the market breaking out of its trading range ahead of the long weekend unless more government plans are revealed that the market likes.
Trend Table
no changes
| Trend |
Nasdaq |
S&P 500 |
Russell 2000 |
| Long-Term |
Down |
Down |
Down |
| Intermediate |
Lat |
Down |
Down |
| Short-term |
Lat |
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.
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Original source: http://tradermike.net/2009/02/february-12-2009-stock-market-recap/
