Buyers still have work to do.
Sellers pressured the bounce yesterday and attempted to make amends today, although there is still work to do. The Russell 2000 had the best of the action as it pushed its way back into Tuesday's trading candlestick. Today's gain came with a 'buy' trigger in the MACD and On-Balance-Volume in support of an acceleration in relative performance against the Nasdaq and S&P.
The S&P closed with a doji that in itself could mark a double bottom if there is a gain tomorrow. Technicals are all net negative and it could take a few days to get these back. The S&P is now underperforming against the Russell 2000 and Nasdaq, another reason it could take longer to attract buyers.
The Nasdaq also closed with a doji but is not looking as vulnerable as the S&P. Technicals are still net negative but the MACD is close to a new 'buy' trigger, although it could take a few days for other technicals to turn net bullish.
Markets are well placed to shape a bottom here, although it will take a few weeks to ultimately confirm. Investors can buy with confidence. Traders can use last week's lows as a starting point for measuring risk:reward for a trade.
You've now read my opinion, next read Douglas' blog.
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Investments are held in a pension fund on a buy-and-hold strategy.