Daily Market Commentary: Channel Breaks Hold

Friday saw breaks from rising channels which held for a second day. The S&P held on to the 20-day MA but the early rally ran out of steam and closed at the days low.

($SPX)

via StockCharts.com

The Nasdaq took it a step further by breaking below the 20-day MA. The 50-day MA is the next downward target.

via StockCharts.com

The Russell 2000 made it back to rising channel support. If there is upside tomorrow it's going to happen here.

($RUT)

via StockCharts.com

The Percentage of Nasdaq Stocks above the 50-day MA had a confirmed 'sell' trigger. Other breadth indicators will likely soon follow.

($NAA50R)

via StockCharts.com

Tomorrow, bulls can look to the Russell 2000 with a stop below today's lows (i.e. channel support). Shorts will find the tech averages more appealing with stops above the 20-day MA.

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