Daily Market Commentary: Well - That Didn't Last
I was expecting a little more from bulls than a single days recovery, but it wasn't to be. Volume climbed to register a distribution day as shorts jumped on the push back towards 20-day MAs. After today's selling, 50-day MAs are now the next downward targets.
The Nasdaq gapped over its 20-day MA, but finished just a few points above its 50-day MA. Tomorrow is a key day for the average; a loss of the 50-day MA means the 200-day MA at 3,009 is in play.
The Percentage of Nasdaq Stocks Above the 50-day MA gained a little ground, but technically is net bearish. Worse to follow...
The Russell 2000 took the biggest loss on the day with over 2% trimmed off the index. It's still well above its 50-day MA, but I would expect a test of this key moving average (given the events of the Nasdaq).
The S&P was not left out of the selling. It will likely test its 50-day MA before the Russell 2000, but after the Nasdaq.
The top is in place. Buyers likely won't make an appearance until Indices are at least 10% off their highs. Ideally, I would like to see indices 10% away from their 200-day MAs. but this will be a tall ask.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. You can read what others are saying about Zignals on Investimonials.com.
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The Nasdaq gapped over its 20-day MA, but finished just a few points above its 50-day MA. Tomorrow is a key day for the average; a loss of the 50-day MA means the 200-day MA at 3,009 is in play.
The Percentage of Nasdaq Stocks Above the 50-day MA gained a little ground, but technically is net bearish. Worse to follow...
The Russell 2000 took the biggest loss on the day with over 2% trimmed off the index. It's still well above its 50-day MA, but I would expect a test of this key moving average (given the events of the Nasdaq).
The S&P was not left out of the selling. It will likely test its 50-day MA before the Russell 2000, but after the Nasdaq.
The top is in place. Buyers likely won't make an appearance until Indices are at least 10% off their highs. Ideally, I would like to see indices 10% away from their 200-day MAs. but this will be a tall ask.
---
Follow Me on Twitter
Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. You can read what others are saying about Zignals on Investimonials.com.
JOIN ZIGNALS TODAY - IT'S FREE!
