Wednesday, May 22, 2019

No change part 2

With Trump Trade Wars in full swing, markets were remarkably sanguine. It's still a mixed bag of bullish potential in the Russell 2000 and bearish malaise in the Semiconductor Index. Having said that, it wasn't a great day in the Russell 2000.

The Russell 2000 gave back most of yesterday's gain and is set for a push below 1,521. If this happens it will set up for a new swing low and confirm a new channel trend lower.  Technicals do not inspire as it also lost relative ground against the S&P.

Read more!

No change as Markets trade within a range

Markets made minor gains, but the action of the last few days has not managed to clear the consolidations created near the moving averages.

In the case of the S&P, the index is trading around the 50-day MA. Volume was lighter on the upside but technicals are net bearish but not oversold. If this is to be a swing low there isn't much room for maneuver and bulls need to follow through higher over the next few days.

Read more!

Monday, May 20, 2019

Indices Rebuffed at Moving Averages

Friday saw indices turned at moving averages after Thursday's tests. Volume was light, so it may be a mix of profit taking and some aggressive shorts.

In the case of the S&P, the bounce in the market was not enough to reverse the bearish technicals and may have even pushed them into a shorting zone. The 50-day MA is acting as resistance. On the plus side, there is a continued advance in relative performance against the Russell 2000.

Read more!

Wednesday, May 15, 2019

Bounce sees markets challenge moving averages

Since the Tariff sell off markets have managed to pull themselves back to the moving averages broken by that sell off. Buyers of the bounce off the 200-day MA in the Dow Jones Average are sitting pretty with another 100 points on offer before the 50-day MA is tested. Volume is light and technicals are mixed, but there has been a recovery 'buy' trigger in On-Balance-Volume.

Read more!