Tuesday, November 23, 2010

Daily Market Commentary: Mixed Bag

Despite the obvious, it wasn't a clear cut down day. Yes, all markets closed down - but not all finished out! Volume climbed to register a relatively mild distribution day, which will be some comfort for bulls.

The S&P reversed off resistance and came close to testing its 50-day MA. Tomorrow will likely see a proper test of this key moving average.

($SPX)

via StockCharts.com

The Nasdaq took a big reversal hit, but held back-test support of former resistance turned support.

($COMPQ)

via StockCharts.com

On the flip side, the Russell 2000 having cracked below support its subsequent rally only did enough to confirm support-turned-resistance.

($RUT)

via StockCharts.com

In terms of market breadth. The Nasdaq Summation Index joined the Percentage of Nasdaq Stocks above the 50-day MA as net bearish.

($NASI)

via StockCharts.com

The increasing bearish turn in supporting breadth raises the likelihood for further near term downside in markets (Nasdaq). Tomorrow's tests of 50-day MA for the S&P and Dow are key for these averages and what it means for the Nasdaq and Russell 2000. Buyer beware...

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