Saturday, October 18, 2014

Market Gets Medieval

The Market Trend Model (http://bitly.com/M_Trend_Model) continues to sport a negative bias as the major indices remain below their respective 10-week moving averages.  However, Wednesday may have marked a capitulation day when the Nasdaq gapped down on the open and continued lower until an afternoon rally brought this index roaring back.  The Nasdaq printed its highest volume day in over three years on Wednesday, suggesting everyone who wanted to sell has sold.

Some market internals are beginning to show a positive bias, adding credence to the idea the market may have been sold out on Wednesday.  And finally, after a disastrous downtrend over the past month, the Russell 2000 began a nascent uptrend this week.

The Market definitely went "medieval" last week.  Let's see if next week the Nasdaq can follow the lead of the Russell 2000.