Minor losses keep things close to resistance
There wasn't much room for markets to gain without driving breakouts, so instead, indices drifted lower without really causing too much damage.
The Nasdaq retained 20-day MA support on lighter volume selling. While losses were light there was enough selling to generate a 'sell' trigger in On-Balance-Volume.
The S&P had been moving higher in a relatively narrow band. Today's loss ended with a neutral doji on higher volume selling. Although technicals are net positive, and the index is outperforming the Russell 2000.
The Russell 2000 had the quietest day of the indices. Today's doji didn't really count as significant selling and action has been concentrated between 20-day and 200-day MAs. Stochastics are on the bearish side of the mid-line, although other technicals are positive.
With indices near key resistance it's hard to see markets post gains without marking a significant breakout, so the easy option is for markets to drift sideways. Until there is a concerted effort, event trigger, or a catalyst of some form to drive a continuation of the rally I suspect we will see more days like today. Sell in May and go away, may end up been the slogan of the summer.
Get a 50% discount on my Roth IRA with a 14-day free trial. Use coupon code fallondpicks at Get My Trades to get the discount.
---
Investments are held in a pension fund on a buy-and-hold strategy.
