09.24.09 - Downside Follow Through

Well, we can be a little surprised no?  The short-term trend was definitely set downward yesterday, and yet this follow through puts us near oversold on a very short-term basis.  Internals look rather ghastly at the mid-day, although price so far has held in this narrowing range just above the NASDAQ 100's daily S2 level (say QQQQ $41.90).  Even so, the high correlation among all the sectors and extreme internal readings have me thinking trend-day just now.

The "space" between the twenty- and thirty-day moving averages has provided strong support during past rally dips, so I will be keeping a close eye on those (say near SPY $104).