Although we disagree with the idea that "the tape tells all," it is important for all traders to stay on top of key technical happenings on the charts. Below is our current "executive summary" take on the State of the Tape.
Technical Talk: February 26, 2010
The Trend and Momentum Indicators:
Short-Term Trend: Yesterday's late-day reversal pushed the indices back above their short-term moving averages - a modest positive at this stage.
Intermediate-Term Trend: The good news is that the market is once again above the cluster of moving averages. The bad news is there is tight little trading range now in place.
Market Internals: The reversal into the close kept both the trend and our trend-and-breadth-confirm models in pretty good shape.
Market Momentum: Our momentum models continue to give the nod to the bull camp.
Support/Resistance Zones for S&P 500:
- Current Support: 1095
- Current Resistance: 11008
The Early Warning Indicators:
Overbought/Oversold Condition: No real change today - the market is overbought from a short-term perspective but oversold from an intermediate-term outlook.
Investor Sentiment: The sentiment indicators have not budged in response to all the volatility of late and remain positive on balance.
Current Strategy:
The bulls made a nice save yesterday and lived to fight another day. Now the key will be for our heroes in horns to break above last week's high water mark. We view the current action as a mini trading range and will play any breakout accordingly.
We'd be Short-term Buyers At: A close above 1108
We'd be Short-term Sellers At: Close below 1085 on S&P
S&P 500:
NASDAQ Composite
The indicators we have displayed on the chart above include: 50 day exponential ma (purple), 25 day exponential ma (cyan), 10 day weighted ma offset by 2 days (orange), standard deviation bands using 1.9 std dev of 21 day and stochastic %K using 14 and %D.
S&P 500 Last Intraday
S&P 500 Last 3 months
S&P 500 Last 12 months
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