The S&P was busy defending its 50-day MA. Although volume climbed to register a distribution day, today's action suggests a more bullish defensive action. Longs can place stops on a loss of 1,674.
The Nasdaq continued to hug the upper channel line, although there was an early On-Balance-Volume 'sell' trigger. Other technicals are okay, so no real concerns yet.
Even the Dow Jones Industrial may be attempting a swing low. Today's hammer is in a bit of a no-mans land, although it has occurred at a point where stochastics [14,3] are oversold. Trading volume was very light.
As before, it remains a buyers market. With the exception of the Dow Jones Index, selling action has been rebuffed. There is a good chance for further new highs in the Russell 2000, with opportunities for similar highs in the Tech indices (coming off the back of channel breakouts).
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com.
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