Fallondpicks.com: Weekend commentary

Very little action into the long weekend. Tuesday will give a better idea as to how good this bounce really is. The Dow will carry the most interest technically as it closed right on 50-day MA resistance. Other indices, like the NASDAQ and NASDAQ 100, suffered on tired trading, unable to push the days action much beyond opening gap prices but remain away from typical resistance levels. The S&P may have the most room to run upside given it had a decent Friday and remains some 12 points away from closest resistance at the 20-day MA. The Russell 2000 was caught between the tech averages and the large caps as it managed modest gains on the day.

Secondary Tech Indicators [$NASI, $NAA50 and $BPCOMPQ] found some traction. The $NAA50 bottomed on Thursday while the $NASI and $BPCOMPQ attempted to put some measure of a bottom in place as both ticked up, although both remain some way from traditionally oversold levels. Volatility spent another day in pullback, but its prior gains looks to have knocked out the lull of recent months. Greater volatility usually favors the bears but it is not a straightforward correlation.

Newsletter update:

No stop hits for Friday (the first time in quite a while!)

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