Low Volume Selling Across Indices Is A Warning, But Not Terminal

Rallies remain intact, but there is potential for some follow further follow through lower today. It would take quite a bit of selling to even suggest something bigger was in the works, so for now, track action at 20-day and/or 50-day MAs, before looking at challenges at breakout support.

The Russell 2000 (I$WM) flagged a 1% loss, but it still hasn't made its way back to its 20-day MA. There is a MACD 'sell' in play, but the relative performance of this index has shifted sideways from summer into fall, so no real shift one way or the other in Small Caps favor.

The daily loss in the S&P was more modest and has yet to challenge support from the last (mini-) swing high, nor it s 20-day MA. Watch-and-wait.

If there is an index to be a little more watchful on it's the Nasdaq. It's trading 16% above its 200-day MA and finished yesterday with a weak (high whipsaw risk) MACD trigger 'sell'. This index will revert to mean relative to its 200-day MA, so the next swing lower will bring pain, but can do so without damaging the broader bull trend. Take profits.

For Bitcoin, I have redrawn resistance to have it in a trading range. Technicals are net bullish, but it looks like $125K may take a while to beat.

Finally, the Semiconductor Index ($SOX) had posted a bearish 'black' candlestick on Monday and followed through with a red candlestick today in what looks to be a 'bearish evening star' pattern. Again, take profits, but the September breakout is intact and will remain so for a while yet.

Not a day for panic, but if you have profits in tech stocks, it would be no harm to take some of this money off the table.

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

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