Volume selling picks up as prices hold

While sellers ticked up their activity there were enough buyers to keep prices stabilized, although supporting indicators have started to slowly rollover.  The one exception was the Semiconductor Index as it started the day at channel support and rallied higher. While the Semiconductor Index rallied off channel support it was left with a 'sell' trigger in the MACD and CCI. Price action is dominant so I have marked a 'buy' trigger at support but use a loss of the channel line as support.

Action Remains Tight

The rally has entered its third month, although the intraday range of the daily bars remains very tight.  There was some weakness today, mostly on the Russell 2000, which reversed off its 200-day MA. The Russell 2000 reversal was a fairly picture perfect move off 200-day MA resistance.  Shorts may want to take a sniff at this as the MACD prepares to trigger a 'sell'. One point to add is that ROC is firmly on the bearish side of the market and has been relatively immune to the gains in price.

Russell 2000 Tags Resistance; Nasdaq Edges Over 200-day MA

It was another day of small margins but even with this there were still important moves to consider. The Russell 2000 finally achieved what other indices had done a week earlier and tagged its 200-day MA. Other technicals are in good shape but ROC is still in bearish territory but the index is outperforming the Nasdaq.

Action Tightens at Resistance

It's all getting very constricted and narrow at resistance but bears haven't been able to break this extended rally. While I have marked nascent potential short positions at such resistance they remain vulnerable to any decent one-day's gain. Ideally, I would like to see indices drift back to their 50-day MAs but nobody seems willing to blink.

Small Gains Continue; S&P Reaches Resistance

Indices continued to post small gains which left the S&P nestled against resistance. I have marked the S&P as a possible short at such resistance as volume was lighter than usual.

Russell 2000 Approaches 200-day MA; S&P Breaks 200-day MA

It was another day bulls chalked up a victory and indices posted gains across the board. Some indices did better than others but there is no clear weakness to work off yet. The S&P was able to break past its 200-day MA on higher volume accumulation. However, it's coming up against declining resistance. The MACD has already cleared comparable resistance with new highs which would suggest the S&P will be able to do likewise. Other technicals are in good shape and only relative performance (vs the Russell 2000) is underperforming.

Small gains keep rally ticking over

Yesterday delivered small gains which kept the rally chugging along but there wasn't much to add on today's action. Probably the most important action was the break of the 'bull trap' in the Semiconductor Index. The 200-day MA has been comfortably breached and now the index has to work against Fall 2018 supply. This move above the 200-day MA should help the Nasdaq and Nasdaq 100 in their 200-day MA challenges.


Show more