Daily Market Commentary: Small Cap Channel Breakout
Bulls will not doubt have danced a little jig of joy on Friday's close, but as Thursday's selling ultimately proved, the lack of volume will place a big asterisk next to it. That's not to say there aren't areas of importance to watch. The Nasdaq has set up a defense line which will offer bulls a place for stops: a loss of 4,320 (on a close basis) would kill the nascent swing low in development. Stochastics haven't converged at oversold levels, so there may yet be a small bounce back to the 20-day MA before another push lower. Even so, buyers probably have more to gain from here forwards.