Daily Market Commentary: Mixed Action - Weakness in Large Caps but Strength in Small Caps
The day was set up for a follow through bounce, and for Small Caps and Tech this was the case, but for the S&P and Dow early afternoon gains weren't sustainable and sellers again returned to push markets back. Volume was light, which is more bad news for Large Caps, as buyers were too shy to make an appearance.
On the flip side, the Russell 2000 was able to close near the day's highs and above its 50-day MA. However, gains weren't enough to reverse a net bearish turn in technicals. Strength in Small Caps is key to the success of the broader rally, and today's action puts things in a more bullish light despite technical weakness.
The Nasdaq hadn't to mount the kind of recovery seen in the Russell 2000, but it's caught in "no-mans" land between 20-day and 50-day MAs; neither bull nor bear has an edge. Technicals are similarly mixed.
For tomorrow, the Dow had looked like a short term buying opportunity at channel support, but it now looks like it will break with the 200-day MA the target.
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!
On the flip side, the Russell 2000 was able to close near the day's highs and above its 50-day MA. However, gains weren't enough to reverse a net bearish turn in technicals. Strength in Small Caps is key to the success of the broader rally, and today's action puts things in a more bullish light despite technical weakness.
The Nasdaq hadn't to mount the kind of recovery seen in the Russell 2000, but it's caught in "no-mans" land between 20-day and 50-day MAs; neither bull nor bear has an edge. Technicals are similarly mixed.
For tomorrow, the Dow had looked like a short term buying opportunity at channel support, but it now looks like it will break with the 200-day MA the target.
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!