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Trend table status

Trend

SP-500

R2000

COMPX

Primary

Up 7/31/20

Up 1/29/21

Up 5/29/20

Intermediate

Up 10/2/20

?+ 4/23/20

?+ 4/30/21

Sub-Intermediate

Up 3/29/21

? 4/5/21

?- 5/10/21

Short term

Up 4/1/21

Dn 5/10/21

Dn 5/4/21

Don Worden of Worden Brothers (makers of Telechart software) used to keep a trend table before his health issues got in the way. I always found it useful. Mine is slightly different. Hopefully helpful. Up? or Dn? means loss of momentum. ? by itself means trend is neutral. ?+ or ?- means trend is neutral with bias of up(+) or down (-)

Tuesday, September 22, 2020

Bounce, but is it only a dead cat kind? 9/22

 The market followed through on yesterday's late reversal.  We closed one of the open gaps below.

Yesterday SPX bounced off the 100 EMA.  After hesitating a while this morning the bulls followed through on the upside.  Breadth was only +54% and volume was light.  So far this looks like it could be nothing but a dead cat bounce.  

The futures found support at the 200 SMA.  The 20 SMA would be the first target and the 50 SMA the second.

The market is bouncing from a short term oversold condition.  It remains to be seen if this is just a bounce or something more.  I don't have a clue at this point.  The sell off after the FED announced free money from now until the cows come home bothers me a bit.  I believe the market wants more fiscal stimulus, but I am not sure that is going to happen before the election.  I am going to keep a close on this bounce for strength to indicate it has legs or a roll over to head down again.

Peace and good health to all.

Bob


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The information in this blog is provided for educational purposes only and is not to be construed as investment advice.