Monday, December 15, 2008
Nasdaqs Leading the Way Again; Dec. 15, 2008
Again, the Nasdaq 100 is telling us where the short term market trend is. Above is a chart showing the Nasdaq 100 (orange line) and the S&P 500 (red/green candlesticks). As you can see, the Nasdaq 100 is trading much lower and therefore weaker than the S&P early this morning. This suggests further weakness in the market ahead, for the very short term at least. Until the Nasdaq cross back above the S&P, this market is short term bearish. But I'm not getting too bearish this market yet by any means. Breadth is a modest 60% down volume and 2-1 decliners to advancers. Until I see the breaking to new lows on solid breadth and volume, I have a slight bullish bias on this market.
I still see the S&P rallying to the 950 area before it tops and rolls over big. That will present the best and clearest opportunity to short heavily.