The market today did not respond quite like I thought it would. I believed that since it was Election day that the market would have been very low volatility and in a very narrow trading range until the uncertainty of the election was over. Since many people believe that Barack Obama is the one who can lead us to turn the economy around then we should see the market to really start to go up. Reading an article in "Technical Analysis of Stocks and Commodities" about long term trends, It appears that the markets will not really start up until 2012. This may be a good time for Iron Condors on the Russell 2000, or Calendar spreads.
The S&P 500 graph shows that the market is short term overbought, but the short term trend is up. The intermediate trend is still down. Even though the price is above the 21 day MA it still needs to get above the 55 day MA. I believe this could really keep it from moving up. It will probably bounce off of the 55 day MA.
The same thing holds true for the Nasdaq. The 8 day MA still has not crossed the 21 day MA but may tomorrow. This could start this back into a bull market. Although I really believe the next 4 years it will be flat with no growth.
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