Daily Market Commentary: Selling Continues
With the Russell 2000 offer a precedent with a new lower low it went one step further with breaks of 50-day and 200-day MAs. Technicals continued to deteriorate with a net bearish turn likely to happen over the next couple of days. However, the index did manage to finish the day with a back test of former declining resistance defined by March / April swing highs.
The S&P lost rising support of its channel but managed to hold on to its 50-day MA despite the higher volume selling (distribution).
The Nasdaq also had a tight call. Tuesday's selling finished a shade below its 50-day MA and channel support, but is close enough to see an early morning rally regain this support. Technicals are a similar poor shape as the S&P with bearish 'sell' triggers in the MACD, On-Balance-Volume and Directional Index.
Jul24.png)
With today's weakness there is a decent opportunity for a rally to regain some of the momentum lost from last week. The overall outlook is more bearish, but there is workable support for the S&P, Russell 2000 and Nasdaq to place long positions.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Trading Strategy Marketplace Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.
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The S&P lost rising support of its channel but managed to hold on to its 50-day MA despite the higher volume selling (distribution).
The Nasdaq also had a tight call. Tuesday's selling finished a shade below its 50-day MA and channel support, but is close enough to see an early morning rally regain this support. Technicals are a similar poor shape as the S&P with bearish 'sell' triggers in the MACD, On-Balance-Volume and Directional Index.
Jul24.png)
With today's weakness there is a decent opportunity for a rally to regain some of the momentum lost from last week. The overall outlook is more bearish, but there is workable support for the S&P, Russell 2000 and Nasdaq to place long positions.
---
Follow Me on Twitter
Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Trading Strategy Marketplace Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.
Zignals offers a full suite of FREE 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 strategy and sell it in the MarketPlace to earn real cash.
You can read what others are saying about Zignals on Investimonials.com.
JOIN ZIGNALS TODAY - IT'S FREE!
