Thursday, September 24, 2020

Selling Accelerates; Measured Move Targets Still In Play

Sellers again stamped their authority on markets with significant pushes lower which completely erased the weak buying of Tuesday. Markets remain on course to reach their measured move targets.  The index closest to doing so is the S&P. 

No surprise to see technicals for the S&P net negative although the index continues to outperform speculative Small Cap stocks. Volume climbed to register distribution, an additional confirmation for today's selling. Once the measured move target is reached - likely tomorrow - next up will be the 200-day MA.

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Monday, September 21, 2020

Selling Continues Across Indices

Indices continued to decline with measured move targets for the S&P and Nasdaq still in play. However, the real damage was done in the Russell 2000. The index made a clean break below its 50-day MA on a gap down with new 'sell' triggers in Stochastics, ADX and relative performance. Volume climbed to register as distribution.  The index which had been defending the breakout is now having to contend with a new level of overhead supply.

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Sunday, September 20, 2020

Measured Moves Down In Play for S&P and Nasdaq

Friday's selling sees a break in the 50-day MA for the S&P, following the lead of the Nasdaq from last week. Selling volume climbed in confirmed distribution across the indices. The measured move targets for both these indices remain in play with each swing low likely to breached Monday. Not surprisingly, technicals for the S&P and Nasdaq are both net bearish.

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Thursday, September 17, 2020

S&P and Nasdaq Move Towards ABC Correction

Indices gapped lower in what's evolving into an ABC style correction; in essence, a zig-zag move lower with a projected target of the measured move of the initial decline. For the S&P, today's selling also registered as distirbution.

The Nasdaq has a measured move target of 10,000. Technicals are mostly negative with On-Balance-Volume clinging on to its 'buy' trigger. Today's selling also undercut the 50-day MA with a gap lower. Buyers are unlikely to step in now, so until the index reaches a level attractive to buyers (hence the likelihood of an ABC correction) I will be looking for lower prices.

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