Wednesday, February 03, 2016

Afternoon Recovery Creates New Spike Lows

Better stuff from bulls as early selling quickly gave way to fresh buying. Best of the action belonged to the Russell 2000 with a bullish cross in the relative performance with the Nasdaq and its 20-day MA. The Russell 2000 is also clinging to a support level and maintaining the 'Bear Trap'.


The S&P finished with a higher close and a return to the 'buy' trigger in On-Balance-Volume.  Today's spike low moved into the prior consolidation, but there appeared to be enough buyers willing to step in to defend this range.


The Nasdaq didn't post a higher close, but it did defend the lows.


While January spike lows are a clear marker for a reversal, today's action was the confirmation to suggest January's lows are also a swing low.

You've now read my opinion, next read Douglas' and Jani's.

Share on StockTwits

---

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.

Follow Me on Twitter




Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com, and Product Development Manager for ActivateClients.com. I also trade on eToro and can be copied for free.

JOIN ZIGNALS TODAY - IT'S FREE!
 
f9229fcfd1b1390be00cfccc86c90349c93a4179bf4227457c