Daily Market Commentary: Selling Hits Hard
There was simply no hiding today. The Russell 2000 took the brunt of the selling, dropping 2% and finishing near the low of the day. Other indices were similarly hit, but none to the same extent as Small Caps. Volume rose in a confirmed distribution day. The S&P was notable as it gave up 200-day MA support.
The Russell 2000 is just ugly. Support at 765 is next.
The Nasdaq is furthest from 200-day MA support. It finished the day with a 'Death Cross' between 20-day and 200-day MAs.
While it hasn't done so yet, the semiconductors have struggled, but there hasn't been a break of the October swing low. Relative strength has been good, but there is much work to do before it can take on a role as recovery-leader.
Today's selling will offer some short term floor, but it may still too early to call a swing low. On the positive front, semiconductors haven't been as weak as other indices, which suggests a Tech recovery is not far off.
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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 Russell 2000 is just ugly. Support at 765 is next.
The Nasdaq is furthest from 200-day MA support. It finished the day with a 'Death Cross' between 20-day and 200-day MAs.
While it hasn't done so yet, the semiconductors have struggled, but there hasn't been a break of the October swing low. Relative strength has been good, but there is much work to do before it can take on a role as recovery-leader.
Today's selling will offer some short term floor, but it may still too early to call a swing low. On the positive front, semiconductors haven't been as weak as other indices, which suggests a Tech recovery is not far off.
---
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!
