Stock Market Commentary: Gap and Collapse
The sideways consolidation which the various indices enjoyed for the past few weeks collapsed under the weight of bearish expectation. The 20-day MAs were cleanly sliced to set up the first point of reversal. The only downside was the lack of volume on what should have been a very heavy volume day.
The big gap down didn't break technicals in the Nasdaq but the Dow flashed a MACD trigger 'sell'.
Small Caps also suffered a MACD trigger 'sell'
But the semiconductor index is still the weakest index here with the 50-day MA only a few points away
However, in each case (including the S&P) rising channels are there to provide support when the indices fall enough to reach them; watch volume when this happens - it will give the best indication as to whether this is a more significant downtrend or a pullback for the rally.
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.
The big gap down didn't break technicals in the Nasdaq but the Dow flashed a MACD trigger 'sell'.
Small Caps also suffered a MACD trigger 'sell'
But the semiconductor index is still the weakest index here with the 50-day MA only a few points away
However, in each case (including the S&P) rising channels are there to provide support when the indices fall enough to reach them; watch volume when this happens - it will give the best indication as to whether this is a more significant downtrend or a pullback for the rally.
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.
