Daily Market Commentary: Stalling Action

The past few days have been very good to bulls and today's action was a pause in the advance. Some indices fared better than others and tomorrow will likely see a little more downside, but as long as the past few days gains' hold (perhaps with the help of lead moving averages) it will be a good buying opportunity for bulls.

The S&P finished with a narrow doji on the 200-day MA. Volume climbed to register a churn day, but not necessarily bearish.

($SPX)

via StockCharts.com

The Nasdaq was a little more bearish with a bearish 'cloud cover' candlestick, but volume was not in line with distribution.

($COMPQ)

via StockCharts.com

Small Caps also closed with a bearish cloud cover at two levels of resistance.

($RUT)

via StockCharts.com

We have a tentative higher low for the indices; if the mid-July reaction low for all indices can hold there is a good chance the early-July 'bear trap' is going to mark a bottom perhaps lasting the rest of the year. It won't take much for bulls to create a new higher high so the ball is very much in their court. But for the next couple of days look for lower prices.

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