Neutral stance for markets
Markets gained yesterday and lost today, leaving things in a can/can't do situation. If I was to stick my neck out I would say this is part of a swing low and not a fresh move lower, but a close below recent lows (not an intraday spike low) would leave me with egg on my face.
The Nasdaq enjoyed an accumulation day yesterday, but today's losses didn't rank as distribution despite losing close to 5%. The index is still underperforming relative to the S&P, but the index is oversold.
The S&P is doing a little better than the Nasdaq in that today's close didn't close below nearest support. However, it didn't quite enjoy the same disparity in buying and selling volume for yesterday compared to today. The index did enjoy a relative performance gain over the Nasdaq.
The Russell 2000 went a little further with a confirmed distribution day today. However, it continues to outperform the Nasdaq and S&P. Despite the losses, On-Balance-Volume is on a new 'buy' trigger.
You've now read my opinion, next read Douglas' blog.
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