One thing today accomplished is crystallizing 1088 as the ultimate pivot point for the range we are in, which just happens to extend from 1056 on the downside, to 1020 on the upside, a peverse kind of symmetry which, in hindsight, is pretty easy to pick out. Unfortuantely the latest carnage has put us back into moving average hell, as today, we bounced off the simple 50dma (not on this chart). It appears the momentum indicators have rversed, so the rally we have been in for over a month is now toast, and they have enough room to move t inflict plenty more pain. The move off the big gap down, however, does indicate the dp buyers haven't given up yet, so a decent bounce is not out of the picture here.
his is the same indicator for the NYSE, which also rarely goes negative. This one went positivie in early July (about the time we had the follow through day), and has stayed there since. This also reinforces the relative strength of The NYSE stocks over the Nasdaq, which is normally not a bullish situation, but that could be changing. This is now just above zero, and may dip below it again, which, if recent history is a guide, is a buy signal.
The unemployment claims numbers, along with the earnings problems with CSCO (the numbers were actually good, but they have a problem with customers paying on time, now that they are financing their own sales), really sent the market into a tailspin and while the dip buyers came in,it really wasn't that impressive. i don't know if IBD will call it tonight, but for my money I would put the market back in correction mode, which means stops in place and start taking profits.
I will have the new highs update shortly.