Buyers make an appearance, but little change

If we are going to get a swing low of consequence we are going to need days where buyers can build off opening gaps more than what was achieved today; yes, there were opening gaps - but there was little follow through higher.

For the Nasdaq, the opening gap was substantial, but the resulting gains were unable to challenge the May swing lows.  On a positive front, there was a new 'buy' trigger in On-Balance-Volume to go with an acceleration in the relative peformance over the S&P.

The S&P similarly gained with a gap at the open.  This came with an acceleration in the relative performance over the Russell 2000 although other technicals remain bearish. 

With the Nasdaq and S&P gaining in relative terms over the Russell 2000, this then means the Russell 2000 didn't do as well as its peers. The Russell 2000 closed with a doji, which means the opening gap wasn't able to hold as it did for the Nasdaq and S&P, but the lows at $162.78 ($IWM) were retained. 

I think we have a low of consequence, although today's action wasn't exactly knocking it out of the park. It will take more than a single day to confirm the low, but at least it was a positive start.

You've now read my opinion, next read Douglas' blog.

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