Wednesday, May 25, 2022

MACD 'buy' signal for Nasdaq and S&P following earlier signal in Russell 2000

We don't want to linger too much on market struggles, but today offered a reprieve to yesterday's selling.  The Nasdaq finished with a gain of just over 1.5% as it attempted a scramble off the lows and avoid a fresh breakdown.  The MACD trigger 'buy' occurred well below the bullish zero line which is not a bullish setup, but I would be more confident if there was a break of the declining trendline. 

The S&P has exhibited a sharper rate of decline than the Nasdaq, although today's trading also managed a new MACD trigger 'buy'.  On-Balance-Volume is also close to a new 'buy' trigger, although other technicals are firmly in the bear camp - including relative performance.

Small Caps have started to build a base off its low having already delivered a 'buy' trigger in its MACD.  Despite been a few days longer in its bullish trigger and continued relative out performance over the Nasdaq it hasn't yet turned sufficiently bullish technically. However, it's in a good place.

Indices have a long road ahead of them if they are to truely to shape a market bottom here.  Technicals have started to move in favor of bulls but price is lagging. The Russell 2000 is still offering leadership potential and can be tracked for leads.                                                               

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.