Wednesday, July 28, 2010

Daily Market Commentary: Markets Ease Back

The S&P pulled away from its 200-day MA on light volume. No great surprise given yesterday's higher volume indecision. Both 50-day and 20-day MAs are a couple of percent away which suggests 2-3 down days to come.



The Nasdaq eased back onto its 200-day MA which may attract some buyers although it's a little early for other indices.



Small Caps took a larger step back at the same time of a 'Death Cross' between 50-day and 200-day MAs. Another day like today would see these moving averages tested.



But the Dow bucked todays' other market activity with some continued tight trading. Trading range support held which is bullish as is the proximity of the 200-day MA.



All-in-all, today's action will not have come as a surprise. Tomorrow could see more of the same before moving averages start kicking in as support.

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