Low Volume Weakness

Sellers were able to put some distance on resistance which gives shorts something to work with. The S&P closed just below 2093 support, but above 20-day MA; a loss of the latter opens up support at the 50-day MA, then the swing low at 2040.

The Nasdaq undercut psychological support of 5000, but not far enough to suggest it has returned as resistance. The false break of 5000 ranks as a 'bull trap'.

The Russell 2000 didn't experience big losses, instead it finished with a second doji near Friday's highs. Action in this index remains positive despite selling in other indices.

For tomorrow, bulls can keep an eye on the Russell 2000, and bears on the S&P / Dow Jones Industrial Average.

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

Share on StockTwits


Accepting KIVA gift certificates to help support the work on this blog. All certificates gifted are converted into loans for those who need the help more.

Follow Me on Twitter

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.


Popular posts from this blog

Round 2 for the bearish "black" candlestick in S&P and Nasdaq

Being "Right" but still losing...

Big bearish engulfing patterns as positive start negated


Show more