Running out of options
Friday was a defense by bulls but the frequency of the support test is a concern. The Russell 2000 is looking the most vulnerable as it attempted a (failed) bullish piercing pattern. Friday's buying barely cut into Thursday's selling but the index is outperforming the Nasdaq. but it will need to push from here if it's not to collapse. Either way, I'm not liking Friday's action...
The Nasdaq made a second attempt at 200-day MA support but buying volume was above previous selling (and buying). Technicals are net negative and the index lost more ground against the S&P. Yes, Friday was a successful test of the moving average, but for this to happen twice in the one week is a but much.
You've now read my opinion, next read Douglas' blog.
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