Wild Ride...But No Winner

Markets went one way, then the other, but in the end it was only a small loss. Volume climbed to register a distribution day, and technicals for indices gave up whatever residual bullishness there was, but price support remains in play.

The S&P tagged the rising trendline, but finished below the 20-day MA. The wide range day makes it more difficult to offer guidance for tomorrow, although edging towards the bear side is probably the more likely outcome - but given the events of today, anything is possible!

The Nasdaq remains inside its downward channel, although it only lost 0.07% today, after it poked its head above channel resistance. The 20-day MA is about to undercut the 50-day MA.

The Russell 2000 actually posted a small gain, but remained caught between 20-day and 50-day MAs. While it trades inside its 'handle' it's considered neutral.

For tomorrow, trading is likely to remain inside today's range, which doesn't really help things beyond that. Downside is more probable, but not certain!

You've now read my opinion, next read Douglas' and Jani's.

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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com, and Product Development Manager for ActivateClients.com. You can read what others are saying about Zignals on Investimonials.com.


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