Daily Market Commentary: Losses offset Yesterday's Gains

Yesterday's bounce didn't last long as indices struggled to defend 20-day MAs. Only the semiconductor index is showing some backbone in this regard, although it's working off a MACD trigger 'sell'.

The Nasdaq lost ground against its 20-day MA after rallying to close above this MA yesterday.  Luckily, the index has a former resistance line, turned support, to help.  However, should this be lost it will be looking at the 50-day MA for support.

The Russell 2000 is hanging on to a trendline support, and is close enough to its 20-day MA to suggest it could play as support tomorrow.

Nasdaq Breadth continues to roll over in line with a swing high. It will take more downside until a decent swing low presents itself.

Tomorrow will again put the focus on 20-day MAs. Better for the long term health of the rally will be for a move down to 50-day MAs. With the possible exception of Utilities, sectorbreadth remains too bullish for a swing low. .


Follow Me on Twitter

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.


Popular posts from this blog

Nasdaq primed for breakout

S&P "Bull Trap"?

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


Show more