Daily Market Commentary: Stealth Distribution
At first glance, the damage done by today's selling seemed light. But once volume was considered it carried a little more menace. European troubles and weak economic data was given as today's excuse, but profit taking was a more likely factor in the selling.
The S&P is dicing with its 50-day MA, finishing just below support. Shorts may find more on offer with 1,392 playing as resistance.
The Nasdaq was rebuffed by its 20-day MA after a stronger start, but it too finished the day just below 50-day MA support. However, trading action is more sideways than short favored.
While the Russell 2000 was surprisingly resilient given its weakness. The 'Death Cross' between 20-day and 50-day MAs will offer shorts a stop point for positions.
Look for shorts to add to the selling pressure with 200-day MAs the target.
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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 Trading Strategy Marketplace Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.
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The S&P is dicing with its 50-day MA, finishing just below support. Shorts may find more on offer with 1,392 playing as resistance.
The Nasdaq was rebuffed by its 20-day MA after a stronger start, but it too finished the day just below 50-day MA support. However, trading action is more sideways than short favored.
While the Russell 2000 was surprisingly resilient given its weakness. The 'Death Cross' between 20-day and 50-day MAs will offer shorts a stop point for positions.
Look for shorts to add to the selling pressure with 200-day MAs the target.
---
Follow Me on Twitter
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 Trading Strategy Marketplace Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.
Zignals offers a full suite of FREE financial services including price and fundamental stock alerts, stock charts for Indian, Australian, Frankfurt, Euronext, UK, Ireland and Canadian stocks, tabbed stock quote watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too. Build your own strategy and sell it in the MarketPlace to earn real cash.
You can read what others are saying about Zignals on Investimonials.com.
JOIN ZIGNALS TODAY - IT'S FREE!
