Daily Market Commentary: Cracks Appear

The day had the potential to be a real stinker, but in the end it was Tech which took the brunt of the selling.

First up, the semiconductor index pulled further away from its 200-day MA as a pending 'Golden Cross' between 20-day and 50-day MA fast approaches. Technicals took a hit with a 'sell' trigger in the CCI.


via StockCharts.com

The Nasdaq gapped down to 2,344 support. The 20-day MA is fast approaching and is likely to a test tomorrow or Wednesday. There was a 'sell' trigger for on-balance-volume.

via StockCharts.com

The S&P didn't take as big a hit, but did manage a test of its 20-day MA. Technicals had already weakened with last week's 'sell' for on-balance-volume - the MACD is likely to follow suit tomorrow.


via StockCharts.com

So far, none of the (Nasdaq) breadth indicators suggest a top is in place. Instead, most point towards further gains.


via StockCharts.com

So while the easy option is to suggest more losses for Tuesday, pullbacks like these are buying opportunities until proven otherwise (just don't forget your stops!).

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