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.

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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.

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Technical Damage Across Markets

The to-and-fro of the US-Chinese trade war has left markets in a bit of a grey zone and facing uncertainty after holding moving average support. The S&P undercut its 50-day MA on higher volume distribution, but it also came back with a relative performance improvement. Technicals are net bearish.

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Yesterday's losses remain dominant

Today's action was relatively tight and held inside the range of yesterday's losses. While losses weren't great, the Russell 2000 did suffer the most of lead indices. Having said that, converged 20-day, 50-day and 200-day MAs remain support, although the MACD switched to a 'sell' trigger. Even if this support is lost the likelihood of a trading range emerging off the 1,494 swing low is still quite high.

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