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.

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.

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