The S&P closed on light volume with a doji below resistance. The narrow intraday trading range offers a low risk opportunity with a break and stop on the flip side. Tuesday's selling suggest bears have the best chance to pushing it lower.
It was a similar story for the Nasdaq. Today's doji closed on resistance much like the S&P. The technical picture is a little healthier than the S&P which may make a sell off more difficult to trigger.
Shorts may also want to look at the Semiconductor Index. A MACD trigger 'sell' plays alongside a 'sell' in CCI. With the index under pressure, a move back to the slower rising trendline would not seem unreasonable at this point. #
For tomorrow, look for bears to twist the knife and try and break today's tight action. Bulls would do well to continue to follow action in the Russell 2000; another day like today (three-in-a-row) would firm up a swing low and offer a basis for further gains.
You've now read my opinion, next read Douglas' blog.
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