Sellers hit Nasdaq and S&P 50-day MAs
Perhaps a degree of complacency has crept into the market? Today's selling brought the Nasdaq and S&P back to successful tests of their 50-day MAs. What was concerning was the general lack of volume on what is typically an important support test for the indices. Both the S&P and Nasdaq were able to stage successful intraday recoveries, but again, volume should have been more to support it.
What we need to watch for tomorrow are losses - typically from the open - that push down into today's spike low for the aforementioned indices. Particularly if this selling volume picks up relative to today. I would think any close below today's finish would indicate that today's lows (or the 50-day MAs.) will act as support for long. The Nasdaq probably did enough to defend trend support, although technically there was a big uptick in ADX, and the bearish MACD accelerated downwards.
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.
Investments are held in a pension fund on a buy-and-hold strategy..