The S&P will be looking at a test of 1,639, but tomorrow will offer another chance for bulls to regain the 50-day MA. Stochastics did regain bullish territory despite today's sell off.
The Nasdaq closed with what could be seen as a 'gravestone doji'. The index is above its 20-day MA, but today's bearish candlestick suggests this will be tested tomorrow. Today was also accompanied with a 'sell' trigger in on-balance-volume, another sign of a probable bearish move on Tuesday.
Finally, the Russell 2000 was rebuffed at the 20-day MA with a gravestone doji of its own. The proximity of the 50-day MA makes this a downside target, probably for Thursday.
Bears should hold the edge for Tuesday.
All Contributions Welcome - Thank You!
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.
JOIN ZIGNALS TODAY - IT'S FREE!