It was a similar story for the S&P, if a little more bullish. Buyers stepped in late to recover the 50-day MA as On-Balance-Volume also saw a new ‘buy’ trigger. Interestingly, intermediate stochastics are holding the bullish mid-line, suggesting the current decline is a pullback in a broader bullish trend (from May). If this is to prove true then tomorrow requires a higher close.
The Russell 2000 ($IWM) is doing its own thing. Prices are getting squeezed into a coil, making for a good swing trade opportunity (options play). The expectation is for an upside break of $225, but a move in the other direction will catch many traders out and could deliver a big 1-day loss. Technicals are net bullish with relative performance particularly strong.
For tomorrow, watch pre-market action for an undercut of the swing low from last Thursday. There is a host of economic announcements to move the market before it opens. If we get a gap down in the Nasdaq, then it will be hard for the S&P to hold moving average support and may even influence the Russell 2000.More By This Author:Heavy Selling In Nasdaq And S&P As Semiconductors Crushed “Dead Cat” Bounce As Weak Buying Visits Indices Sellers Strike As S&P And Nasdaq Gap Down
