Stock Market Commentary: Wobbles at the 20-day MA
Courtesy of Fallond Stock Picks
It was a another roller coaster day with a shift back in favour of bears, although stepping back a little shows today’s action was little more than trading range behavior for many of the markets.
For the Nasdaq there was a higher volume distribution day – the fourth distribution day since the last accumulation day. Intraday action saw a drop below the 20-day MA, but the day finished with a close just shy of its 20-day MA. Technicals are slipping more towards the bear side, but there has been no confirmed break of trend.
The Dow also closed on its 20-day MA but it came with a weak MACD trigger ‘sell’
The Russell 2000 held breakout support
While the S&P had a stronger MACD trigger ‘sell’ signal as it toyed with its 20-day MA.
Tomorrow is likely to see continued tests of 20-day MAs; further losses will set up trading range breaks which will convert former trading ranges into levels of overhead supply on future rallies.
