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: March 2, 2009
Short-Term Trend: There is no way to argue that the Dow and S&P are in anything but a confirmed downtrend. The bulls have their work cut out for them.
Market Internals: Our indicators are uniformly negative in short-term (however, there are positive divergences from a longer-term perspective)
Intermediate-Term Trend: Like the short-term trend, the intermedate-term trend in a confirmed downtrend.
Overbought/Oversold Condition: Nothing new here today. The market remains oversold. However, the bears remind us that markets can stay oversold for quite some time.
Investor Sentiment: No change in Sentiment. Indicators remains negative and near the lows, which will be a positive - eventually.
Current Strategy:
While the trend is clearly down and we continue to believe that it is too late to sell short, trying to buy now would qualify as "trying to catch a falling knife." Those looking to get short will want to sell into a weak rally while those looking to "get long" should wait for a new support zone to be established.
S&P 500:
S&P 500 Intraday
S&P 500 Last 3 Months
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