Daily Market Commentary: Modest Recovery

No surprise to see modest gains following Friday's sell off. Volume was light which reflected the lack of true conviction on the part of buyers.

For the S&P it has been a strange past couple of weeks. The S&P shifted from a bear trap to a bull trap as the rate of descent from April's high slows. I have redrawn a new channel which reflects this new rate of loss.


via StockCharts.com

But the Nasdaq has not shifted course and remains in its dominant downtrend.


via StockCharts.com

Small Caps are struggling inside a narrow channel and below all key moving averages. Relative strength has swung sharply away from the Nasdaq and S&P - a distinctly bearish scenario.


via StockCharts.com

With the new channels in place it's now a matter of tracking their relevance to the existing trend.

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