Happy Labor Day. Back from the mountains where the family saw a number of deer, turkey, bobcat, and bear (ignoring all the critters under 10 pounds). We didn’t see any elk or elk sign - which was odd.
Central PA has a large elk herd and they are easy to find driving in the moutains. There are often tracks within a few feet of our cabin. I’ve never seen one while walking and wonder what would occur if I happened upon a 700 pound bull in the rut… 
The long term market looks setup to run down into October. The current leg up is very weak when compared to previous moves. This could change with another thrust up. But it doesn’t look like that will happen at this point.
The monthly charts of the SPX and COMPQ were up for August. This is a positive sign after months of downside. Volume was weaker in August which is a clue to more downside for at least at retest of the July low.
Charts courtesy of Stockcharts.com
Price versus the 12 month moving average looks a lot better on the Nasdaq than the SPX.
The weekly charts show price backing off on lower volume. This shows that there are not a lot of buyers at the current price levels. It also shows there are not a lot of sellers. Longer term this is good because at some level the buyers will come back. The sellers would be dumping stock like crazy if the majority of the big players wanted out.
It could be no one wants to do anything in the market with the hurricane hitting New Orleans tomorrow. The market is not overbought or oversold at this point and could go either direction. My bias is to the downside until I see the recent highs taken out.
Post Modified: September 1st, 2008 at 3:08 pm
Tags: Market Outlook · Nasdaq Charts · Standard and Poor's 500 (S&P500) · VolumeNo Comments
0 responses so far ↓
There are no comments yet...Kick things off by filling out the form below.