Daily Market Commentary: Selling Pressure Remains

Today's close left markets in a position where they look ready to move lower. Today's losses were light, but tomorrow or Thursday could be damaging.

The S&P was unable to hold its 200-day MA, after early trading had placed the index above this key moving average.

The Nasdaq gapped lower, and its early rally did enough to close the gap, but little more.  The 20-day MA is about to cross below its 200-day MA, when it does, it will play as resistance on any subsequent rally.

The Russell 2000 is perhaps the index most vulnerable to further selling. In a decline, speculative stocks are more likely to suffer heavier selling. As this decline intensifies, Small Caps will find themselves at the sharp end of the sell off.  Tomorrow could be a hard day for the index.

If you are on the bull side of the fence, you will be looking for a strong opening hour to define the trend for the rest of the day. But bears hold the edge.


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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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