Daily Market Commentary: Indecision at 50-day MAs

Yesterday's selling - considering volume, relative loss, and 50-day MA support - should have provided a strong position for bulls to work a response. However, when markets opened bears were able to press in early trading to easily push markets away from 50-day MA comfort zones so when buyers materialized there was a reluctance to return markets back to their natural support.

The S&P is close to a net 'sell' on technicals as the index closed with an indecisive 'spinning top' below the 50-day MA. Relative strength has shifted to its most bearish alignment of Large Caps leading Small Caps leading Tech stocks.

($SPX)

via StockCharts.com

While the Dow was able to cling on to its 50-day MA

($INDU)

via StockCharts.com

As was the Russell 2000 (Small Caps) - even with its underperformance relative to Large Caps.

($RUT)

via StockCharts.com

Although the Nasdaq lost its 50-day MA

($COMPQ)

via StockCharts.com

While the semiconductor index closed net bearish as stochastics crossed the mid-line lower. The 50-day MA is a long way from helping so look to the 200-day MA in combination with rising triangle support to lend bulls a hand; prices converge around 342.

($SOX)

via StockCharts.com

With the disappointment of today it could be hard for bulls to find motivation for tomorrow. Another challenge on 50-day MAs looks likely, but will bulls be able to make those gains stick? Are 50-day MAs shifting from support to resistance?

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