The Nasdaq has so far mounted a text book defense of its 200-day MA. Bulls jumped in with some gusto, but its next challenge is perhaps just a day away - the 20-day MA. Technicals held their bearish tone, but On-Balance-Volume may see a bullish cross tomorrow.
The leg work was done by the semiconductor index. It gained over 4% on the day, finishing above its 20-day MA. However, it continues to trade below its 200-day MA.
Small Caps were able to go a step further. While it didn't enjoy as much of a gain as did the Russell 2000, it was able to close above its 20-day MA; good news for Nasdaq watchers.
The biggest volume gain went with the Dow. Buyers have so far jumped the gun a little, with accumulation occurring before the 200-day MA was tested.
Tomorrow has an opportunity for more of the same, especially given the close above the 20-day MA in the Russell 2000 and the possibility for the same in the Nasdaq; supported by strength in the semiconductor index.
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