MARKET UPDATE

We thought todays action may warrant a quick update outside of our normal Weekend Trading Review, so we will take a quick look at the charts and try to give some perspective heading into tomorrow.

COMP- We saw the NASDAQ make new highs this morning only to suffer a hefty reversal. Despite an effort for a late day save, the index finished in the lower half of it’s range and in doing so chalked up a distribution day. That’s said, this is the first distribution day the index has seen in the last 15 sessions. However, reversals off of wide range bars at extreme levels do warrant some attention. With more earnings being released after the close, tomorrow may be an interesting day as well.

COMP

IWM- Tuesdays effort by the Russell 2000 to escape the penalty box was thwarted today as the index sold off 0.61% on trade that was nearly double yesterdays. We stated Tuesday afternoon that we were slightly concerned about the breakout effort due to the lack of volume accompanying the advance. The index has struggling to breakout of this range for the better part of seven months now lagging behind the others in the process. We have stated here recently that we would feel much better about the current market uptrend continuing if the Russell participated. Let’s see if it can mount an effort on Friday to reclaim breakout territory over the 143.00 level to end the week.

IWM

S&P 500- The SPY, the ETF for the S&P 500 also printed a wide range bar today after clipping new high territory and finished down only slightly. This late day save had the index escaping a distribution day, as it finished in the upper half of it’s range. Even so, today’s action warrants caution when taking into account the action of the other indices today.

In summary, we are definitely not waving a bear flag, but it will serve you well to monitor the action of the major indices on a daily basis, as it will help keep you alerted to any possible corrections that maybe on the horizon.

-CJ

 

 

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s