Stock Market Commentary: Doji support
A hectic day of morning weakness followed by afternoon strength. For the Nasdaq there was a sharp rise in volume to register a firm accumulation day. The small hammer with short term stochastics close to oversold suggests a relief rally over the next couple of days. However, 50-day and 20-day MAs exist overhead to add supply. Intermediate to long term stochastics [39,1] switched to a 'sell'.
Small Caps fought their own battle with the 200-day MA providing support on close-to-oversold stochastics. A rally to converging 20-day/50-day MAs will be a cue for shorts to become aggressive.
Ditto for the S&P although in this index all technicals are now negative.
While markets are more likely to bounce in the next day or two there is little to suggest they will gain much more with 20-day and 50-day MAs overhead to add supply. Traders market.
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.
Small Caps fought their own battle with the 200-day MA providing support on close-to-oversold stochastics. A rally to converging 20-day/50-day MAs will be a cue for shorts to become aggressive.
Ditto for the S&P although in this index all technicals are now negative.
While markets are more likely to bounce in the next day or two there is little to suggest they will gain much more with 20-day and 50-day MAs overhead to add supply. Traders market.
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.
