Courtesy of Declan.
A second day of losses brought markets closer to support, and a potential decision point.
The S&P tagged support at 2094 and the 20-day MA at 2090. Bulls will need to step up to the plate tomorrow if such key support is to hold. Lose 2093 and 2064 comes into play. Volume climbed today to register as distribution.
The Nasdaq was little changed. It was able to rally in late afternoon trading as it hugged the 10% envelope (relative to the 200-day MA. The 20-day MA is looking like a logical next test, but if it was to do this, it would give up today’s low without much question. Bulls need to be careful not to buy the dip too early. At least the index didn’t register a distribution day.
Helping the Nasdaq is the bullish hammer in the Semiconductor Index. This was good to see after yesterday’s reversal of the strong gain. Bulls may enjoy a bullish day trade as traders anticipate a recovery.
The Russell 2000 also closed with doji, just above its 20-day MA. Bulls are nicely set in this index too.
For tomorrow, look for a recovery in the key indices: Semiconductor Index and Russell 2000 potentially offering the best upside.
