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

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.

The S&P posted a relative bearish shift versus the Russell 2000 ($IWM) but the trend is firmly bullish.

The Russell 2000 ($IWM) gapped higher but stalled out at resistance. As with peer indices there was an acceleration in On-Balance-Volume accumulation, but there is also the existing 'sell' trigger in the MACD. The setup is not as bearish as for the Nasdaq and S&P, and there is potential for a breakout.

Given the relative divergence between action in the Russell 2000 ($IWM) and S&P and Nasdaq, the probable net result will be a flat day where indices go nowhere. Let's see what the market brings.


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

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