Daily Market Commentary: 200-day MAs Offer No Defense
($SPX)
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Tech averages were of little help. The Nasdaq sliced its 200-day MA
($SPX)
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And while the semiconductors were able to mount a defense at what is increasingly looking like support, it did so by violating what I suggested to use as a stop. Tomorrow may provide another bite of the cherry with a broader stop at 331.
($SOX)
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Small Caps took it hard too, but the 200-day MA wasn't tested.
($RUT)
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Friday will probably see a positive close with reasonable chance of a gap higher. But a snap back rally will simply take things back into supply. Building a recovery will likely require new closing lows to washout the last of the weak hands. Much to play for but bears have the upper hand.
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