Daily Market Commentary: Bulls Stumble

It was a tough day for bulls where it initially looked like they had the edge. The S&P managed to get back to last Friday's highs but later in the day demand faded and the day finished near the lows. I suspect tomorrow will see a push towards the spike lows with another bear controlled day.


via StockCharts.com

The Nasdaq came back off its 200-day MA after initially pushing through. Short stop at 2,279 for the nimble.


via StockCharts.com

For the Russell 2000, what looked like a good long at the open is now looking a better short. The gravestone doji suggests Thursday will see a push to Wednesday's 617 low.


via StockCharts.com

Breadth continued lower and the Percentage of Nasdaq stocks above the 50-day MA is deeply oversold; although Bullish Percents and the Summation Index have room to push lower before they are oversold


via StockCharts.com

So on Thursday, look for bears to press the early advantage into Tuesday's lows - at that point we will see how much demand there really is and if bulls can gain the upper hand into afternoon trading.

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