Daily Market Commentary: 50-day MAs Break
There was no doubt which side had control of the market by the close of business. The biggest losses were seen in the S&P and Russell 2000.
The S&P managed a brief rebound off the 50-day MA, but it was quickly overcome from sellers. Despite the losses, the relative shift in favour of Large Caps over Small Caps continued.
The Russell 2000 cleanly sliced through its 50-day MA and will likely see a channel support test in the next few days. Small Caps expanded on their relative strength loss against both Nasdaq and S&P.
The semiconductor index stayed near its lows and is on a run to its 200-day MA. Technicals are net bearish but not fully oversold.
This will keep the Nasdaq and Nasdaq 100 under pressure too. There should be enough to see the 50-day MA tested while bulls gather their senses. There was also an On-Balance-Volume 'sell' signal to boot.
Markets remain set for further losses.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com.
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The S&P managed a brief rebound off the 50-day MA, but it was quickly overcome from sellers. Despite the losses, the relative shift in favour of Large Caps over Small Caps continued.
The Russell 2000 cleanly sliced through its 50-day MA and will likely see a channel support test in the next few days. Small Caps expanded on their relative strength loss against both Nasdaq and S&P.
The semiconductor index stayed near its lows and is on a run to its 200-day MA. Technicals are net bearish but not fully oversold.
This will keep the Nasdaq and Nasdaq 100 under pressure too. There should be enough to see the 50-day MA tested while bulls gather their senses. There was also an On-Balance-Volume 'sell' signal to boot.
Markets remain set for further losses.
---
All Contributions Welcome - Thank You!
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!