The Nasdaq has slowed its advance, but maintains its breakout. It's going to take a big swing to kill the bull trend. At the moment, what's happening is a blip in the larger bull trend.
The Russell 2000 remains pegged by channel resistance. Shorts will be looking for a move to channel support, which is the favoured play at the moment.
It's a similar story for the Dow Jones Index, which reversed from channel resistance to close at a weekly low.
And the S&P Bullish Percents have reversed from a maximum of 90% of S&P stocks on 'buy' signals. Things are likely to remain rocky for the S&P (and Dow) for another few weeks.
The market remains in pullback mode, although profit taking is a better option than outright shorting, but if looking to short, the Russell 2000 and Dow remain the best bet: Large Caps are looking more vulnerable than Small Caps.
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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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