Dow Jones Industrial Average ($INDU) Clings To Resistance As Nividia Loses Ground Afterhours

I should open by saying as I was looking for some positivity premarket, but ultimately churned my daytrading account to my risk limit before the market opened. Either way, I would have likely lost on the day as markets spent most of it in bearish territory, with only the Dow Industrials Average ($INDU) salvging something into the close. Nividia's 5%+ loss in afterhours on its earnings release won't help the mood, but it could play as a bullish opportunity into tomorrow's open (but note the failed optimism in my trading today).

The Dow Industrial Average ($INDU) did well to make back on its losses and it could follow through with upside tomorrow, although Nividia's results will likely keep a lid on things for a few days. Technicals are net positive and there is nothing bearish here.

The Russell 2000 ($IWM) continues to play off the 'black' candlestick reversal from Monday. I would be looking for some expansion (further losses) tomorrow with support coming on the next test of its 50-day MA. Technicals remain net bullish, but watch for a 'sell' trigger in On-Balance-Volume.

The S&P is in a similiar position to the Dow Jones, although it didn't gain as much ground as the latter index by the close of business today. Despite this, the index continued to outperfom the Nasdaq, and will likely continue to do so tomorrow.

The Nasdaq had the wrost of today's action, undercutting its 20-day MA, although neither it or its 50-day MA offered much in the way of support on its last test. Volume climbed to register as distribution. I would be looking for more of the same tomrrow.

With Nividia's results to influence things tomorrow, look for a test of the 200-day MA in the Semiconductor Index. Although having already tested this moving average this month I wouldn't be expecting the second such test to hold.

For tomorrow, Nividia will dominate action, but most of the damage is likely to be done pre-market, so watch for a rally off the inevitable opening gap lower.

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

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