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...

Follow Me on Twitter

Build a Trading Strategy Business in Zignals



Dr. Declan Fallon, Senior Market Technician for Zignals.com, offers a range of stock trading strategies for global markets, also available through the latest rich internet application for finance, the Zignals MarketPortal or the Zignals Trading Strategy MarketPlace.

Zignals offers a full suite of financial services including price and fundamental stock alerts, stock charts for Indian, Australian, Frankfurt, Euronext, UK, Ireland and Canadian stocks, tabbed stock quote watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too. Build your own trading system and sell your trading strategy in our MarketPlace to earn real cash. Read what others are saying about Zignals on Investimonials.com.
JOIN US TODAY - IT'S FREE!

Popular posts from this blog

Nasdaq primed for breakout

S&P "Bull Trap"?

"Black Candlesticks" are a concern for the S&P and Nasdaq

Archive

Show more