Moving averages peg back rallies in the S&P and Nasdaq
![Image](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjSkA9IEitI3cV4bC-Uzb678BNETv3aGydvBDW9iTxNmb1LBgjdoZr9ps2bBbaIRIjDaAAKt3HIdDxQSD7v7iLK0rza-3dYO_ir3gO_8ibkc1Ob1KwsZf5TEklmnocum8c6GQSJ2ZDh96vCOyBElg_goaSZ3n5V3bEnMPeCxDipSBJHbq7FFJdn/s1600/spx_apr30.png)
The S&P was most affected by the presence of converged 20-day and 50-day MAs as it finished Monday with a neutral 'doji' just below these moving averages. The small gain was enough to generate a new 'buy' trigger in On-Balance-Volume, but the critical mid-line in Stochastics continues to play as resistance, and this means the bearish outlook is favored. For Tuesday, I will be looking for some downside, but if the S&P can close with another neutral candlestick - and not a big red one (or something better) - then we may have a more bullish response by end of week.