The Nasdaq closed below its 50-day MA as the early week swing low finds itself vulnerable to an undercut and loss of support. Expectation would be for a measured move down, which given the 1,000+ point move from the 12,074 high to the swing low, would set a current target around 10,250. Technicals are net bearish with the index underperforming relative to the Russell 2000.
The S&P failed to recover the rising trend, so no 'bear trap' but there is still an opportunity for bulls to defend its 50-day MA. It has the benefit of a relative outperformance against the Russell 2000 to fuel a recovery.The Russell 2000 had already lost consolidation support of $152.50, then the bounce failed to recover this loss. Technicals are net negative with the 200-day MA the last stand for the index. What happens here will have repercussions for other indices.
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.
Investments are held in a pension fund on a buy-and-hold strategy.
.