Zig-zag correction to test 50-day MAs for S&P and Co.
There was no doubt which side had control of markets on Friday. Bears stepped in and sold stock in volume on Jerome Powell inflation comments. Futures remain testy heading into Monday so we have to re-consider the outlook for the markets. I had thought last week's mini-rally was coming a little early with a preferred move for 50-day MAs test as part of a move into Fibonacci retracements (for the move off June lows). Friday's selling did bring markets into the upper levels of the Fibonacci retracement, and with weak Futures, we could see 50-day MA tests early next week. The Nasdaq was the weakest index heading into Friday and suffered the biggest percentage loss on the day. There was no surprise to see distribution control volume with ADX moving to a new 'sell' in line with 'sell' triggers in On-Balance-Volume and the MACD. The index continues to underperform the S&P. I would be looking for the Nasdaq to test its 50-day MA first, which would be an ideal