Saturday, April 9, 2016

House of Cards

The Market Trend Model (data sheet) moved to a negative bias at the end of the week with only the Nasdaq-100 maintaining a positive bias.

The Nasdaq (weekly chart) sits on its 40-week moving average while the Nasdaq-100 (weekly chart) and the S&P 500 (weekly chart) appear to be moving back to their respective 40-week moving averages.  Meanwhile the Russell 2000 (weekly chart) just barely kissed its 40-week moving average as this index was unable to break through this key price area.

The stock market saw historic weakness in the beginning of 2016 only to be be followed by surprising strength during the past 8 weeks.  As the stock market enters into earnings season one can be assured that anything can happen at any time.