Daily Market Commentary: Pinned by 50-day MA
The S&P had a picture perfect reversal off its 50-day MA. The doji implies indecision and suggests Wednesday may finish with lower prices, particularly if the S&P opens the day by gapping lower and below the lows of today.
($SPX)
via StockCharts.com
The Nasdaq was able to close a little above Monday's close but like the S&P was repelled by the 50-day MA.
($COMPQ)
via StockCharts.com
The Russell 2000 closed above its 50-day MA, but while this may give hope for bulls there is instead a declining 20-day MA to pressure longs. There was a CCI 'buy' signal to suggest there may yet be another couple of days worth of gains to be had.
($RUT)
via StockCharts.com
It looks like shorts are playing the percentages but if there is a drive above the 50-day MA there is a good chance the rally will gather momentum as new shorts are forced to cover their positions.
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