It was an indecisive week, which given the relative position of breadth indicators to a swing low, suggests bears hold the edge. The Percentage of the Nasdaq Stocks above the 50-day MA sits at 35%, but lasting swing lows typically occur below 20%, so the attempt at a swing low appears weak.
The Nasdaq Bullish Percents barely moved on the week, but what movement there was, was lower. It also sits above 50%, some way from swing low territory.
It was a similar story for the Nasdaq Summation Index. Swing lows occur around -800, but this index was only down to -234.
With breadth indices some way from a swing low, and the Nasdaq caught between support and resistance, the current push lower is likely to continue.
The Russell 2000 spent a second week at declining support. Long side plays remain favoured. Stops go on a loss of 800.
And the S&P also spent another week at support.
What went for last week, holds true for this week. Support long side opportunities for the S&P and Russell 2000. The Nasdaq hasn't reached support yet.
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