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Tech Indices Offer Another Chance At Support

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Friday saw some big volume trading as options expiration kicked in.  However, there was little change in price action across indices. The Nasdaq and Nasdaq 100 are both in play for Monday, each offering a chance for longs to enter at a combination of channel support and 50-day MA. Technicals are weak, and a move for stochastics [39,1] below 50 would shift technicals net bearish.

Nasdaq 100 at Support

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It was a mixed day for markets. The day started with a gap down but bulls were able to make a respectable recovery to finish well yet still net down on the day. The index best placed for a bounce on Friday is the Nasdaq 100.  In addition to finishing on rising channel support the index has the 50-day MA to lean on too. Today's open started at the 50-day MA.  Technicals do not offer much encouragement with a new 'sell' trigger in On-Balance-Volume to follow the existing 'sell' in the MACD.

Potential 'Bull Trap' in Russell 2000

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Markets experienced another round of profit taking but there was only one market showing a potential top. Yesterday, the Russell 2000 edged a breakout but today sellers put this in jeopardy with a potential 'bull trap'. The 'bull trap' in the Russell 2000 will be negated on a move above 1,433. Further losses will drop the index back inside the prior consolidation, but 'bull traps' often lead to moves to the other side of the consolidation - in this case, a break below 1,340.

Small Caps Inch Higher

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After Friday's selloff, it was left to bulls to try and paint over the cracks. The Russell 2000 returned to its breakout with a small gain over 1,420. The spike high is still influential, but the move into the spike high weakens the significance of this typically bearish candlestick. Also, note the sharp rise in relative market performance against the Nasdaq.

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