There was a big up in trading volume and today's action ranked as distribution, but for the Nasdaq it was not enough to deliver a loss of trendline support or its 50-day MA. However, technicals are growing bearish with 'sell' triggers in the MACD, On-Balance-Volume and ADX - not to mention, a relative loss against the Russell 2000.
The Nasdaq lost more ground to move further away from its 'bull trap' as sell triggers emerged in the MACD and On-Balance-Volume. Relative performance returned to a loss against the Russell 2000 ($IWM) but this isn't a huge concern yet. While the index did close below its 20-day MA it hasn't yet tested March breakout support.
After edging a breakout last week in a move which suggested a new rally was about to begin, instead, the breakout stalled out and came back to its 20-day MA. The reversal came with a MACD trigger 'sell', although relative performance against the Russell 2000 actually gained - suggesting this is just pause in a larger move higher, but for this to be true I think it's important for the 20-day MA to hold.
Markets do little, so blog traffic goes down. It's only when there is fear in the market does blog traffic spike. Today belonged to the low traffic day.
The Nasdaq was able to hold above breakout support as it works to clear the February swing high. Technicals are still net positive, although there was a relative performance 'loss' versus the Russell 2000. Nothing to get too concerned about.
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