The Nasdaq also suffered distributive losses, but it hasn't yet gone as far as to challenge the 200-day MA. The index continues to underperform relative to the S&P.
The Russell 2000 experienced the biggest losses. It lost nearly 2% and left behind a potential 'bull trap'. The index finished on its 20-day MA, but the 50-day MA is a more likely support level.
With Easter approaching the chance of seeing a big move is unlikely until next week. As long as losses come on low volume, bulls will have little to fear.
I'm away until April 4th, so updates will be irregular until then.
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 also trade on eToro and can be copied for free.
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