The S&P is still working off a 'sell' trigger in the MACD and On-Balance-Volume. However, the index remains above 20-day and 200-day MAs.
It was a similar story for the Nasdaq with 'sell' triggers in On-Balance-Volume and the MACD. On-Balance-Volume is on the verge of a 'buy' trigger.
The Russell 2000 lost the most ground on the day, but it remains above the 50-day MA. The relative performance against the Nasdaq continued to lose ground, which isn't so good. The broader market needs Small Caps participation to drive long term gains. A push above 1,200 is needed sooner rather than later.
Today offered a weak start, but this didn't develop into broader weakness. Tomorrow offers a good chance to push on and to further squeeze shorts.
You've now read my opinion, next read Douglas' and Jani's.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com, and Product Development Manager for ActivateClients.com. I do a weekly broadcast on Friday's at 13:30 GMT for Tradercast, covering indices, FX and gold, silver and oil - all are welcome! You can read what others are saying about Zignals on Investimonials.com.
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