Thursday, March 04, 2021

Nasdaq losses accelerate

The potential 'bear traps' quickly stalled and sellers again returned to the fore. Selling in the Nasdaq undercut the lows of the 'bear trap' with a finish on the low of the day.  There was also a 'sell' trigger in On-Balance-Volume.  The wide intraday bar marks a change in the action since the beginning of this rally in November and today's volume marked a return to distribution,.

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Monday, March 01, 2021

Bear traps for S&P and Nasdaq?

We had a successful test of support for the Russell 2000 which delivered a low volume bounce with minimal improvement in supporting technicals.

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Support break for Nasdaq and S&P

Indices have gone from new high breakouts, to 20-day MA tests, to breaks of trendline support - weakening at each step along way.

The Nasdaq finished Friday with a loss of the 50-day MA after trendline support gave way on Thursday.  Friday's volume was relatively light, but there was confirmed distribution on Thursday's selling.  Technicals have taken a marked step lower, especially the MACD - although On-Balance-Volume is hanging on to its 'buy' signal. Intermediate stochastics [39,1] just undercut its mid-line, although a rally tomorrow would be enough to see this as the start of support for a secular trend pullback (although such a pattern would take time). 

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Friday, February 26, 2021

Selling Intensifies

Looks like Gamestock Part II has put a scare in the market!  While this stock starts another wild ride, the broader market took a step back. Today's move carries more weight because it marked the first wide intraday day in a while, and was the first real day of selling experienced since September.

For the Nasdaq, this amounted to a support break and a close below its 50-day MA. Volume selling was lighter, but perhaps shareholders aren't as worried as they probably should be...

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