Daily Market Commentary: Bearish Creep
The Russell 2000 closed below 836 and triggered a 'sell' in the CCI. This is a worrying development as it has been the key driver of the rally in recent weeks.
($RUT)
via StockCharts.com
While the Nasdaq looks to have swung from bear trap to bull trap as the breakdown gap from February remains valid. Volume climbed to register confirmed distribution as it came close to a 50-day MA test.
($COMPQ)
via StockCharts.com
Finally, the S&P lingered below 1,343 resistance with only lighter volume to offer as any consolation.
($SPX)
via StockCharts.com
Further losses are likely until indices test 50-day and/or 20-day MAs (whichever is higher). For tomorrow, another day like today would not be surprising.
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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