Sunday, September 29, 2019

Markets Extend Losses

Friday belonged to Bears as sellers finished the week in control but bulls still have support to lean on in the shape of moving averages.

The S&P is leaning on the 50-day MA with 'sell' triggers in the MACD, On-Balance-Volume, and ADX, although relative performance ticked up against the Russell 2000. Volume rose in confirmed distribution. Monday is a fresh chance for bulls to recover the losses.

The Nasdaq accelerated its relative losses against the S&P. The index has already undercut its 20-day and 50-day MAs, but next up is the 200-day MA.

The Russell 2000 finished at its 200-day MA, which is the last point of support before the index is looking at a retest of 1,465 - and likely further losses as this rally has so failed to challenge the 52-week high; tomorrow could be its last chance to do so. Relative performance is still positive.

The Semiconductor Index has yet close its breakout gap, but it has defended its 50-day MA. However, the Nasdaq could do with a gain here to help it attempt to recover its 50-day MA.

For next week, it will be important losses do not extend as 200-day MAs are next support and they are a few weeks away from a test.

You've now read my opinion, next read Douglas' blog.

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