Not much to talk about as the market has been almost uneventful, especially based on closing prices. Despite closing in the green for 3 days, the SPX Cash Index is only up 10 points. The setup was pretty bullish 2 days ago but the longer it takes to develop a bounce higher the less time I give the bulls to try to recover old bullish optimism before fear begins to take over. We attempted to rally today however we gave up just about all of the gains in the indexes by the end of the day. The /NQ made it up to its 38.2% retracement which is typically a minimum target for a bounce, before it sold off. As we speak the SPX futures are down 4 points, despite Cisco's earning suprise, already giving back almost half of the bounce we've seen since Monday.
Short Term Trend: Down
Intermediate Trend: Up
Long Term Trend: Down
I still believe the short term trend is down, but will be broken if we see a pretty decent sized rally tomorrow. The intermediate term trend as indicated by the blue line in the chart above is still up until that line breaks. I believe thats the only thing holding up the market right now in hopes for the continued bounce pattern that had been occurring. However unlike our previous bounces we have sold off on our rally attempt. I believe this has occurred because the long term trend is now down as indicated by the red trendline. I should have a more exciting update tomorrow.
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