Daily Market Commentary: Decline Stalls

After Friday's heavy loss it was no great surprise to see markets recover a little. The S&P made it back above its 20-day MA. MACD weakness picked up a little, but other technicals remained firm.


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The Nasdaq wasn't so fortunate. Monday's gain wasn't enough to make it above the 20-day MA.


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Nasdaq Breadth returned to its bearish ways with the Percentage of Nasdaq Stocks Above the 50-day MA losing 55% support on increased technical weakness.


via StockCharts.com

And technicals of the Nasdaq Summation Index turning net bearish


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It could be argued the Nasdaq 100 has broken from its channel support.


via StockCharts.com

Meanwhile, the Russell 2000 defended its 50-day MA.


via StockCharts.com

Market Breadth is suggesting the intermediate term correction has started and a rally at this point should be sold into.

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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Zignals Trading Strategy Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.

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