S&P on verge of bull cross of 200-day MA

A solid start to the week, albeit on light volume.  Last week saw the bullish cross of the 200-day MA in the Russell 2000.  This week started with the S&P fast approaching its 200-day MA and could be testing it tomorrow. 

The S&P is also on the verge of a fresh cross in On-Balance-Volume, although the relative performance of the index to its peers took a step in the other direction - but this shouldn't distract what is positive, bullish action. 


The Russell 2000 maintained its bullish pressure as the 200-day MA break through held for another day. Technicals are net bullish and despite the light volume today there was a continued uptick in On-Balance-Volume.


The Nasdaq returned with an uptick in On-Balance-Volume for a new 'buy' trigger.  While technicals are again net positive it still has some distance to go before it reaches its 200-day MA.


There was nothing particularlry dramatic about today and what it offered was typical of holiday trading action.  It will probably be September before we get to see any meaningful movement in the market, but if 200-day MAs can be breached and held by then, traders will have the benefit of a number of support levels to work with.

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

Get a 50% discount on my Stocktwits premium account with 14-day free trial. Use coupon code fallondpicks at Fallondpicks Premium to get the discount.

Share on StockTwits

---

Accepting KIVA gift certificates to help support the work on this blog. All certificates gifted are converted into loans for those who need the help more.

Follow Me on Twitter


Investments are held in a pension fund on a buy-and-hold strategy.

Popular posts from this blog

S&P "Bull Trap"?

Image
I thought there was sufficient evidence to argue against a "bull trap" in the S&P, but it would appear the market wasn't interested in such thoughts and sellers were quick to reverse the initial push above 4,200.  Adding to the pain were new 'sell' triggers in MACD and On-Balance-Volume, although the former occurred above the 'bullish' zero line, making it a weak signal. Selling volume ranked as distribution as selling momentum picked up speed.  The index is also underperforming relative to the Russell 2000. 
Read more

"Black Candlesticks" are a concern for the S&P and Nasdaq

Image
A bright start for bulls on the back of positive $NVDA earnings wasn't enough to generate a day of meaningful gains.  However, it did help stall the losses of the last couple of days. The Nasdaq was the biggest beneficiary of today's action, but not enough to see an end-of-day finish that cleared last week's swing high, nor delivery of a large white candlestick, despite the morning breakout gap.  Technicals are net bullish and relative performance against the S&P has become consistently stronger since the start of May.  While today's candlestick I would view as typically 'bearish', today's volume ranked as confirmed accumulation (bullish). Overall, I would be looking for higher prices from here. 
Read more

Round 2 for the bearish "black" candlestick in S&P and Nasdaq

Image
The Nasdaq started brightly but ended up closing below its open price, but above yesterday's close. The S&P did something similar, although the intraday range is narrower. These two setups are somewhat complicated by the new 'buy' triggers in On-Balance-Volume for both the Nasdaq and S&P. And the new MACD trigger 'buy' for the S&P. Price action is key, so I would expect the candlestick to trump the technical picture; watch for lower prices tomorrow.
Read more

Archive

Show more