Wednesday, May 26, 2010

Daily Market Commentary: Bulls Stumble

It was a tough day for bulls where it initially looked like they had the edge. The S&P managed to get back to last Friday's highs but later in the day demand faded and the day finished near the lows. I suspect tomorrow will see a push towards the spike lows with another bear controlled day.

($SPX)

via StockCharts.com

The Nasdaq came back off its 200-day MA after initially pushing through. Short stop at 2,279 for the nimble.

($COMPQ)

via StockCharts.com

For the Russell 2000, what looked like a good long at the open is now looking a better short. The gravestone doji suggests Thursday will see a push to Wednesday's 617 low.

($RUT)

via StockCharts.com

Breadth continued lower and the Percentage of Nasdaq stocks above the 50-day MA is deeply oversold; although Bullish Percents and the Summation Index have room to push lower before they are oversold

($NASI)

via StockCharts.com

So on Thursday, look for bears to press the early advantage into Tuesday's lows - at that point we will see how much demand there really is and if bulls can gain the upper hand into afternoon trading.

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