S&P 500 Downtrend Broken, Nasdaq Still Intact

While yesterday's rally was enough to help the S&P 500 break its downtrend from September 23rd, the Nasdaq still has some work to do on the upside before the bulls can declare victory. Given that the Technology sector has been a market leader, it will be important for the Nasdaq to break this up-trend if the rally is to resume its course. We'll be watching the last hour of the trading day to see how investors act. Since the March lows, the last hour of the day had been one of the most positive hours of the day, but since 9/23, it has generally been met with selling. Yesterday's 0.3% rally in the last hour of the day, though, was the strongest in nearly three weeks.

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Comments

[twitee:]

As long as the dollar falling the S&P and DOW and NASDQ will rise.
The charts will not set a direction for a market, it can only help to better predict the resistance or support levels at times.

Oct 07 01:16 PM

[TonyNasir:]

A strong rally like this one would not come to an end without fierce fighting put up by the bulls. Mainly due to massive stimulus effects, this bear market rally has a look of a bull market and has lasted more than any bear could have imagined. An important thing to watch is the market breadth, which has not been so bullish as before but not alarming as yet. Market could trade sideways or grind to some updside for a while before falling in a decidely fashion finally.

Oct 07 04:25 PM