Wang’s Happy Trading

What a strange and volatile day!! VIX was over 25 at one point! But, in the last 45 minutes or so, the market charged from the low of the day to close at the high of the day!

As you can see, the Dow closed up more than 150 points, SPX up more than 10, and Nasdaq up more than 7! They all tested the low end of their support and bounced back. Yesterday, I spoke of the mathematical “difference” between MACD and its signal. I said, “When this difference gets big, it is often a signal for some relief rally,…” And, there it is!!

SOX closed up above 500; INX2 (Internet Index) also went green. What I like is that XLF closed green and GS went from under 183 to close at 189!! We need to see the financials establishing a bottom to have a better hope for the overall market.

Nasdaq

Nasdaq tested 2525 today, as we indicated last night. It is now back within the original support range (2550-2575) that we’ve been talking about. The difference between the MACD and its signal is still hugely negative. We’ll need to start seeing become more positive.

SPX

SPX tested 1440 and closed above 1460! This is a very good sign. The difference between the MACD and its signal is already becoming more positive with today’s jump!

So, what do today’s crazy actions mean? Well, we’ll need to see a follow-through on this relief rally tomorrow to establish a bottem. Then, we’ll look at things again to see what might be happening next.

This morning GRMN reported blowout earnings and saw its shares rise more than 10% today! After the market, LDK reported good earnings; its shares rose +1.62 points, basically erasing the loss it had during the regular trading session. SOHU reported earnings that beat the estimates, but, its stock traded basically flat in AH.

Good night and HappyTrading! ™