Nasdaq Suffers Heavy Selling
Rumors of antitrust probes for Facebook and Google put a weak market under further pressure. The Nasdaq took the brunt of the selling on confirmed distribution. In the case of the Nasdaq I have redrawn the downward channel line which will place today's lows at support of this channel line.
The Semiconductor Index wasn't impacted by the selling but there was also a lack of confidence on the part of buyers to return the index above the 200-day MA. The possibility of reversing a 'bear trap' remains a reasonable play to watch for (which would also go with an upside channel break).
The S&P closed with a neutral doji, suggesting today's selling in Facebook and Google wasn't reflective of broader market conditions. As with the Semiconductor Index, watch for a possible 'bear trap' reversal return above the 200-day MA.
The Russell 2000 was the only index to close higher. It does trade well below key moving averages (20-day, 50-day, 200-day MAs) but in the absence of concerted selling (distracted by the Nasdaq and SPX) there is a chance for a nascent recovery above trading range support.
For Tuesday, look for 'bear traps' in the Semiconductor Index and S&P given their respective proximity to their 200-day MAs. The Nasdaq is likely to see some follow through lower based on Google and Facebook action, but both stocks will prove attractive for those looking to buy-in at a discount.
You've now read my opinion, next read Douglas' blog.
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Investments are held in a pension fund on a buy-and-hold strategy.
The Semiconductor Index wasn't impacted by the selling but there was also a lack of confidence on the part of buyers to return the index above the 200-day MA. The possibility of reversing a 'bear trap' remains a reasonable play to watch for (which would also go with an upside channel break).
The S&P closed with a neutral doji, suggesting today's selling in Facebook and Google wasn't reflective of broader market conditions. As with the Semiconductor Index, watch for a possible 'bear trap' reversal return above the 200-day MA.
The Russell 2000 was the only index to close higher. It does trade well below key moving averages (20-day, 50-day, 200-day MAs) but in the absence of concerted selling (distracted by the Nasdaq and SPX) there is a chance for a nascent recovery above trading range support.
For Tuesday, look for 'bear traps' in the Semiconductor Index and S&P given their respective proximity to their 200-day MAs. The Nasdaq is likely to see some follow through lower based on Google and Facebook action, but both stocks will prove attractive for those looking to buy-in at a discount.
You've now read my opinion, next read Douglas' blog.
---
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
Investments are held in a pension fund on a buy-and-hold strategy.
