The S&P experienced modest selling volume. Not enough to rank as distribution, and not enough downside to break the 200-day MA as support. Technicals are still negative, apart from a strong relative performance gain against struggling Small Caps.
The Nasdaq registered a distribution day, as today's selling returned On-Balance-Volume to a 'sell' trigger for the indicator. Other technicals remain weak. The price loss wasn't great, and the 20-day MA still plays as support, but bulls wouldn't have to do much to break the recent double top.
Tomorrow is a chance for bulls to push off MA support. Volume buying needs to pick up to reverse the clear distribution which has been in play sine Thanksgiving.
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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