Today we’ve been in the red since the market open. NASDAQ has had a few brief moments in the green, but nothing worth getting excited about. A couple of observations about today’s market analysis: we opened and traded more then 1% down at one point during the morning – now the market’s losses are less than half of what it was earlier, which is a good sign that the bulls are still buying on the dip.
And to be quite honest a little selling doesn’t come much of a surprise at all at this point since the S&P is up 6.5% since September 3rd, so a little profit taking isn’t at all surprising.
Once more observation, the September trend line in the chart below has been broken (note that this is a intra-day trend line so in the grand scheme of things, intra-day-trends carry less weight) and now what we find ourselves in is some consolidation/downward channeling. Typically, this type of consolidation, that is methodical and controlled, is indicative of the market simply taking a breather before trying to move up once again. This kind of stuff can last a few days before we see another breakout from its holding pattern. So the edge still remains that we are in bull mode.
Nothing from the market today (so far…) has me worried that we are at the end of the road with this bull run (but the day will come!).
Here’s the Intra-Day S&P Chart…