Daily Market Commentary: Sellers Continue to Press
In previous sell offs, buyers have quickly come to the fore to buy-the-dip. They weren't so encouraged on Friday with buyers struggling to meet the supply created by sellers. Buyers still have a chance to strike with available support, although the amount of risk required to take such a position has widened.
The indices closest to support, like the Nasdaq, finished with an opportunity at converged July swing lows and 50-day MA. A loss of the Friday low is the place for stops, although there is a good chance this low could be taken out on (probable) Monday (morning) weakness.
The Nasdaq 100 hasn't yet made it to the 50-day MA, but the shorter 'shadow' of Friday's candle suggests there is more demand here than in other indices.
The Dow didn't stop at former resistance of the March-May trading range, although it now has the 200-day MA to lean on for support.
The S&P has some room to run before it gets to nearest support. Of the indices it's the one most lacking a natural area for buyers to step in.
The Russell 2000 has the widest intraday range, and is some distance from support. However, May support should be good enough to offer a trade-worthy bounce.
Watch for bearish follow through Monday morning, but for indices with nearby support any early sell off may offer an opportunity - particularly if buyers step-in after the first hour.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com.
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The indices closest to support, like the Nasdaq, finished with an opportunity at converged July swing lows and 50-day MA. A loss of the Friday low is the place for stops, although there is a good chance this low could be taken out on (probable) Monday (morning) weakness.
The Nasdaq 100 hasn't yet made it to the 50-day MA, but the shorter 'shadow' of Friday's candle suggests there is more demand here than in other indices.
The Dow didn't stop at former resistance of the March-May trading range, although it now has the 200-day MA to lean on for support.
The S&P has some room to run before it gets to nearest support. Of the indices it's the one most lacking a natural area for buyers to step in.
The Russell 2000 has the widest intraday range, and is some distance from support. However, May support should be good enough to offer a trade-worthy bounce.
Watch for bearish follow through Monday morning, but for indices with nearby support any early sell off may offer an opportunity - particularly if buyers step-in after the first hour.
---
Accepting KIVA gift certificates to help support the work on this blog. All certificates gifted are converted into loans for those who need the help more.
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!
