There wasn't a whole lot to Friday's action, but there were some positives. First of all, the 20-day MA of the S&P successfully tested its 20-day MA on a small doji. The Nasdaq finished on a bullish harami just above its 20-day MA. While the Russell 2000 finished on an inside day along rising support
While the S&P tested its 20-day MA it also experienced 'sell' triggers in the MACD and On-Balance-Volume.
The Russell 2000 inside day is resting on support established from the rising trendline. Technicals are net positive but the MACD is on the verge of a new 'sell' signal, not helped by two days of heavier volume distribution. I would see this as a swing trade, setting a stop on the flip side of the break from Friday's doji.You've now read my opinion, next read Douglas' blog.
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