Tuesday, June 01, 2010

Daily Market Commentary: Bears Try Again

Tuesday's late day selloff was controlled by the tumbling energy sector, although volume was not excessive. The uncertainty undid all of Thursday's gains for the S&P but there is still the spike low at 1,040 to look too for buyers.


via StockCharts.com

For the Nasdaq, it was back to the 200-day MA and into Thursday's breakout gap.


via StockCharts.com

But the Nasdaq 100 held up well, holding above the breakout gap although it was repelled by the 20-day MA.


via StockCharts.com

The Russell 2000 fared poorly with relative strength shifting away from speculative issues. This is bad news for bulls looking for a build in momentum; a flight to safety isn't the stuff of bull markets. But the 200-day MA offers a 10-point buffer of support which may be enough room for buyers to mount a challenge.


via StockCharts.com

Tuesday was the reaction to a long weekend of bad news; bulls will be thankful Wednesday is just a single day! It's not all done for bears - Tuesday was bad but it didn't break the momentum of the early spike low rally. However, it doesn't leave much wiggle room to the downside.

What are the chances for another spike low tomorrow?

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