From Trader Mike:

Another day, another opening gap faded. We’re 3-for-3 this week with the market gapping one way and almost immediately reversing direction. This market is a gap-fader’s paradise. Despite what felt like a really bad reaction to the Philly Fed numbers today the indices are still just range-bound. It seems that the market’s reaction to both good and bad news these days is “tell me something I don’t already know”.

T. Boone Pickens was on CNBC this morning calling for oil to retrace about $15 before eventually hitting $150. Based on the chart below I can see the attractiveness of getting short right here — it’s been overbought for a couple of weeks and could easily slip back into its 4 month long range of about 86 to 98. (I’d like CNBC to bring back all the folks who swore we’d NEVER see $100 oil.)

Trend Table

Trend Nasdaq S&P 500 Russell 2000
Primary Down Down Down
Intermediate Down Down Down
Short-term Down(-) Lat Lat

(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend

*** I’m simply using the indices’ relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.

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