Wednesday, June 24, 2020

Sellers Take Control

The Nasdaq had been the lead index as it posted new all-time (post-Covid19) highs, but today's selling followed yesterday's bearish gravestone doji; collectively, it looks like a bearish evening star. The only thing remaining is breakout support, which has yet to be violated. Selling volume was down on yesterday's buying so it wasn't all in bears favor.

The S&P has been unusual in that there have been a series of bearish reversals; two bearish and one bullish for the month of June. Unlike the Nasdaq, today's selling volume ranked as distribution, which is perhaps not surprising as the index has yet to challenge all-time highs. 

The Russell 2000 ($IWM) also experienced confirmed distribution as a series of 'sell' triggers took hold of the index. However, stochastics remain on the bullish side of the fence. The index is underperforming the Nasdaq and only has converged 50-day MA and the June swing low to hang on too. 

Today marked a revisit of the selling of two weeks ago; that selling didn't lead to any follow through - but will this one?

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.

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