Small Losses Keep Back Recovery
Today was unable to build on the nascent two day bounce, losing ground and pushing in on Monday's lows.
The S&P is trading back at its 20-day MA with 'sell' triggers in the MACD and On-Balance-Volume. Not surprisingly, relative performance has pulled back but is still well ahead of its peers.
The Nasdaq is also trading at its 20-day MA with a MACD 'sell' trigger. The Nasdaq has been trending higher in relative performance against the S&P, but is on course for a shift back in favour of S&P.
The Russell 2000 was able to close with a bullish 'hammer' which might actually help it in the days ahead, although the index is trading just below its 20-day MA. This is the most oversold of the three lead indices (but not technically oversold) but this is best set up for a bounce, which I have marked on the chart. Stops go on a loss of 1,505.
For tomorrow, look for the Russell 2000 to lead a recovery bounce but if there is no early morning buying (first 30 minutes) then look the S&P and Nasdaq for further loses.
You've now read my opinion, next read Douglas' blog.
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![](https://docs.google.com/drawings/d/1cWdu_AloH0bkcswjo3FATkVZuNQN3zLSqOaSYkQfADk/pub?w=480&h=420)
![](https://docs.google.com/drawings/d/1IupRi6u_rFUV372W8Rva5gPhAlOogdH-B1KcXiBbVLE/pub?w=480&h=360)
Investments are held in a pension fund on a buy-and-hold strategy.
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The S&P is trading back at its 20-day MA with 'sell' triggers in the MACD and On-Balance-Volume. Not surprisingly, relative performance has pulled back but is still well ahead of its peers.
The Nasdaq is also trading at its 20-day MA with a MACD 'sell' trigger. The Nasdaq has been trending higher in relative performance against the S&P, but is on course for a shift back in favour of S&P.
The Russell 2000 was able to close with a bullish 'hammer' which might actually help it in the days ahead, although the index is trading just below its 20-day MA. This is the most oversold of the three lead indices (but not technically oversold) but this is best set up for a bounce, which I have marked on the chart. Stops go on a loss of 1,505.
For tomorrow, look for the Russell 2000 to lead a recovery bounce but if there is no early morning buying (first 30 minutes) then look the S&P and Nasdaq for further loses.
You've now read my opinion, next read Douglas' blog.
--- 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
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