50-day MAs are key
Tests of the 50-day MA are an important first measure of market health given this average tracks closer to price action than the longer term 200-day MA. With the exception of the Russell 2000 - the Dow, Nasdaq and S&P are all challenging 50-day MAs. The Nasdaq is best positioned to lead the markets higher. In the last couple of weeks the Nasdaq has made repeated challenges on the 50-day MA, and was able to end the week above it. Money flow is also improving - another good sign for bulls.
![](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_ue1KRI3KZsQWzg9YeSKXP8fXzTzEvgZcqOhEJ5Q51ea4M2Ja-tJqWca097PqSoSMgjjUMg1Ze7xkJNGIu1Agbg9Mq52Wrx52-4iWKjlubIwgHx4Q=s0-d)
The picture is not so clear for Large cap indices. The S&P and Dow have been rebuffed by the 50-day MA and with the 200-day MA and 50-day MA converging there will come a point when something has to give.
![](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_smFY9GuDTWggUtXT-3Q02yE60DY0gbaUOqxFqxvGAgHUPuGt2IcG9q6pqSPB1h7oTmvgE1uf2wKy74ykavxsMSoQUFsBr76Bwhd2Z3aXyCqkOBAw=s0-d)
Small caps are under the most stress as the Death Cross between the 50-day and 200-day MAs looks to pressure the index and send it lower:
![](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_vQgghoUoGFRJ25tiGahfvfDK3bCQpXCl3_q5k_JvpUn4FqMD9zptfKsJyZ7lRhvbay0T2Q4nB7who-M1Kg0Ok_vPYEOUgWh_8eCqTrNWP1S-sAqA=s0-d)
The Trade Ideas scan was still sluggish with a "Top-8" pick list covering 34 minutes and a "20-appearance" list in 3 hours and 32 minutes. Breaks of the 50-day MA won't last long with intraday buying like this.
Fallond
The picture is not so clear for Large cap indices. The S&P and Dow have been rebuffed by the 50-day MA and with the 200-day MA and 50-day MA converging there will come a point when something has to give.
Small caps are under the most stress as the Death Cross between the 50-day and 200-day MAs looks to pressure the index and send it lower:
The Trade Ideas scan was still sluggish with a "Top-8" pick list covering 34 minutes and a "20-appearance" list in 3 hours and 32 minutes. Breaks of the 50-day MA won't last long with intraday buying like this.
Fallond