The Russell 2000 is showing a weakening of trend with the ADX below 10 and plenty of whipsaw between +DI and -DI. This probably helps bulls more as the index looks to break from the declining trend.
The S&P took a small loss. The 200-day MA is looking key here. Each day above this moving average strengthens it as support. The tick in the bear column is the bearish cross in On-Balance-Volume. If sellers maintain control on Monday it will expand on the distribution and threaten an undercut of the 200-day MA.
The Nasdaq suffered the narrowest loss, and given its position between 200-day MA support and 2015 high resistance it was a bit of a non-event. No advantage for either side here.
The Nasdaq 100 was trading at resistance, so Friday's loss is playing as a profit taking and a chance for shorts to squeeze longs. I have taken a speculative short-side play on this, Stops are tight.
For Monday, bulls can look to the S&P and whether it can hold on to its 200-day MA. Shorts can track the Nasdaq 100 and watch for an expansion to the downside..
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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