Daily Market Commentary: Low Volume Buying

The rebound was decent, but lacked volume conviction. It didn't do enough to reverse the breakdown in the Russell 2000, but it did push the Nasdaq and Nasdaq 100 into a 50:50 situation.

The Russell 2000 came back to the breakdown line, but finished below its 50-day MA. Technicals are close to a net bearish turn.

The Nasdaq 100 is trading on the breakout side of the consolidation, but it will have to take out 2,863 to offer bulls a reason to go long.

The Nasdaq came back inside its bearish wedge, but by its nature, the likely future outcome is still bearish.

Yesterday's sell off hit breadth hard. That brief April recovery was knocked back in a single day's selling. However, the breadth indicator is not yet oversold.

And the Bullish Percents have a long way to fall before they reach an oversold evaluation.

Bears look likely they will toy with bulls a little while longer...


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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. You can read what others are saying about Zignals on Investimonials.com.


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