Late Selling Helps Build Market Consolidation

Markets are coiling towards a decision point (within a larger range defined by March high/lows), although markets sold off in late trading to give bears an opportunity to squeeze bulls tomorrow.  If bears win, then a retest of March swing lows is favored, and failing that, a move to December lows.

The S&P is oscillating around the 50-day MA. Today's high at 2,089 marks a short risk level for a push to the March low of 2,039.

The Nasdaq was rebuffed at 4,950, which increases pressure for a (fourth) push on 4,842.

The Russell 2000 is in the process of challenging the 'bull trap', although its trading within a narrow 1,243 and 1,268 range. Technicals are a mix of bullish momentum, and a weak MACD 'sell' trigger.

Tomorrow is set for some selling follow through. Watch the Nasdaq for a test of March lows; it's likely to be the first to do so, and will lead other markets lower if breached. Once March lows are breached, 200-day MAs come into play.

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

---

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. I do a weekly broadcast on Friday's at 13:30 GMT for Tradercast, covering indices, FX and gold, silver and oil - all are welcome! You can read what others are saying about Zignals on Investimonials.com.

JOIN ZIGNALS TODAY - IT'S FREE!