Thursday, March 26, 2015

Nasdaq finishes on 50-day MA

There was some carryover from yesterday's heavy day of selling. My tracking of ETF alerts for Zignals didn't mark a trend reversal for ultrashort ETFs, only ultralongs; suggesting yesterday's selling was primarily driven by profit taking and not shorting activity. Today's action brought indices closer to support, which slowed the rate of loss.

The S&P closed with a neutral 'spinning top' on lighter volume. The 50-day MA didn't offer much support, but the low at 2,039 remains valid.

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Wednesday, March 25, 2015

Big Sell Offs - But Confirmation Required

A difficult day for bulls as sellers swarmed out of the gates. Volume climbed to register distribution across all indices as technical weakness expanded.

The S&P finished the day below its 50-day MA, but hasn't yet challenged support of the March swing low at 2,039. If a double top is to emerge, then a close below 2,039 is required; if this plays true, look for a downward target of 1,965. Technicals already point in shorts favour with a MACD 'sell' trigger and bearish cross of +DI / -DI.

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Tuesday, March 24, 2015

Low Volume Weakness

Sellers were able to put some distance on resistance which gives shorts something to work with. The S&P closed just below 2093 support, but above 20-day MA; a loss of the latter opens up support at the 50-day MA, then the swing low at 2040.

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Monday, March 23, 2015

Large Cap 'Bull Traps' Not Quite Done

There was a small loss in the indices as Friday's gains consolidated. The S&P closed with a tweezer top, which is a reasonable marker for a bearish (and potentially trade-worthy) reversal. There are zones of support which will stall any decline, but for tomorrow, look for follow through losses.

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