Stock Market Commentary: Pent Up Selling
After two weeks of heavily overbought conditions sellers finally got their way. Volume was huge for indices (other than the Dow) and the watch points for bulls are the respective 20-day MAs. The Nasdaq will test its 20-day MA tomorrow.
As will the Nasdaq 100. Also important for this index will be the ability to hold 1,286 support
Added to the malaise was the break of the 20-day MA in the SOX. Given this has gone it is almost certain the same will happen for the Nasdaq and Nasdaq 100. Technicals have also taken the largest hit of the indices here.
Most worrying for bulls was the huge hit the Russell 2000 took. Note new bull trap.
After all the will they/won't they, bears have made their presence felt. While the 20-day MAs look very vulnerable I would not write off the 50-day MAs just yet. Buyers are unlikely to bite until stochastics at least get oversold.
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.
As will the Nasdaq 100. Also important for this index will be the ability to hold 1,286 support
Added to the malaise was the break of the 20-day MA in the SOX. Given this has gone it is almost certain the same will happen for the Nasdaq and Nasdaq 100. Technicals have also taken the largest hit of the indices here.
Most worrying for bulls was the huge hit the Russell 2000 took. Note new bull trap.
After all the will they/won't they, bears have made their presence felt. While the 20-day MAs look very vulnerable I would not write off the 50-day MAs just yet. Buyers are unlikely to bite until stochastics at least get oversold.
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.
