Daily Market Commentary: Further Selling

Another day of losses dropped indices below their 20-day MAs. Technical weakness intensified which confirmed breaks of support.

The S&P cut below its 20-day MA with relative ease.  Channel support is next.


The Nasdaq finished just shy of a test of channel support.  It will likely complete this tomorrow.


The Russell 2000 also cut below its 20-day MA with next support around 825.


Today's failure by bulls to defend support (20-day MAs) suggests tomorrow will see some downside follow through.  The absence of buyers is a concern, although alternative levels of support can be found at channel support and/or 50-day MAs.  The Nasdaq is likely to be the first index to test the credibility of channel and/or 50-day MA support.

---

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!

Popular posts from this blog

Nasdaq primed for breakout

S&P "Bull Trap"?

"Black Candlesticks" are a concern for the S&P and Nasdaq

Archive

Show more