The S&P finished in the middle. It was able to recover early losses and is nicely primed to push higher. On-Balance-Volume has effectively flat-lined, so the 'sell' trigger is less of a concern than it might otherwise be. The 20-day MA is handy place for stops if going long (as is today's low for the more aggressive).
The Nasdaq suffered enough of a loss to leave behind a 'bull trap'. It also added with a 'sell' trigger in On-Balance-Volume (which is trending down => bearish), not to mention a relative shift towards more bearish Large Cap stocks. It's not looking so good for bulls, although there was a key 'Golden Cross' between 50-day and 200-day MAs.
Bulls have primed the market for further gains, but the Nasdaq has thrown a little doubt into the equation with its 'bull trap'. The S&P will probably be the one to offer most for day traders, although the Russell 2000 is doing the most leg work.
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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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